10 Oversold Healthcare Stocks To Invest In

6. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 34 

Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company specializing in messenger RNA (mRNA) therapeutics and vaccines. It creates synthetic mRNA to instruct cells to produce proteins for preventing or treating various diseases, focusing on mRNA-based solutions for infectious diseases, immuno-oncology, rare diseases, and autoimmune disorders.

Moderna, Inc. (NASDAQ:MRNA) plans to file for approval of three new products this year: a new COVID/flu vaccine, a next-generation COVID-19 vaccine, and an RSV vaccine for adults aged 18-59. While the RSV vaccine rollout and positive EMA opinion boost investor confidence, the company also reports positive Phase III results for the flu/COVID-19 combo vaccine and partnerships with BARDA and Mitsubishi Tanabe Pharma. To save $1.1 billion annually by 2027, Moderna will discontinue five R&D programs and aims for operational breakeven by 2028, while continuing to advance clinical trials for mRNA-1647 and mRNA-3705.

In Q3 2024, Moderna, Inc. (NASDAQ:MRNA) reported an EPS of $0.03, and achieved a net income of $13 million, reversing a $3.6 billion loss in Q3 2023. The company’s revenue reached $1.9 billion, driven by strong COVID-19 vaccine sales following U.S. regulatory approval of its updated vaccine. The company reduced operating expenses by $500 million year-over-year through improved productivity and cost efficiencies in manufacturing, R&D, and SG&A. Additionally, the cost of sales dropped 77% to $514 million, reflecting strategic restructuring and lower inventory write-downs, enhancing profitability.

Baron Health Care Fund made the following comment about Moderna, Inc. (NASDAQ:MRNA) in its Q1 2023 investor letter:

“Moderna, Inc. (NASDAQ:MRNA) is a leader in the emerging field of mRNA-based vaccines and therapeutics and was one of the three main producers of the COVID-19 vaccine. Shares fell during the quarter. We believe as COVID shifts away from pandemic status and becomes an increasingly commercial market (rather than government-funded), there is increasing investor uncertainty around what a booster market could look like, which is pressuring shares. Looking beyond COVID, we think Moderna has the potential to disrupt the biopharmaceutical industry, from infectious disease vaccines to oncology, and we remain shareholders.”