10 Most Promising Biotech Stocks According to Hedge Funds

6. Moderna, Inc. (NASDAQ:MRNA)

Average Upside: 78.93%

Number of Hedge Fund Holders: 39

Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company focused on the discovery, development, and commercialization of mRNA-based therapeutics and vaccines, targeting infectious diseases, immuno-oncology, rare diseases, autoimmune disorders, and cardiovascular conditions.

Piper Sandler recently lowered its price target for Moderna, Inc. (NASDAQ:MRNA) shares from $157 to $115 while maintaining an Overweight rating. This adjustment follows Moderna’s annual R&D Day, where the company outlined its goal to secure approvals for 10 mRNA products by 2027. The biotech company plans to submit filings for multiple vaccines, including its next-generation COVID vaccine (mRNA-1283), a combined flu and COVID vaccine (mRNA-1083), and mRESVIA for high-risk adults.

Additionally, the company expects to report interim Phase III data for its mRNA-1647 candidate later this year and is preparing to start a Phase III trial for its norovirus vaccine (mRNA-1403). Moderna, Inc. (NASDAQ:MRNA) is also advancing pivotal cohorts for its mRNA-3927 treatment for PA and mRNA-3705 for MMA. The company projects product sales of $3 to $3.5 billion for the current year and between $2.5 to $3.5 billion for 2025.

However, the timeline for reaching cash flow breakeven has been pushed to 2028, with anticipated revenues of around $6 billion. Despite this, Moderna, Inc. (NASDAQ:MRNA) remains financially strong, with $10.8 billion in cash reserves as of Q2 2024, which is expected to support the company until it achieves cash flow breakeven.

By the end of Q2 2024, 39 out of 912 hedge funds tracked by Insider Monkey held stakes in Moderna, Inc. (NASDAQ:MRNA).