10 Worst Performing Healthcare Stocks in 2024

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1. Moderna, Inc. (NASDAQ:MRNA)

Total YTD Return: -44.88% 

Moderna, Inc. (NASDAQ:MRNA) is a biotechnology company specializing in messenger RNA (mRNA) therapeutics and vaccines. It develops synthetic mRNA that instructs cells to produce proteins to prevent or treat diseases. The company’s primary focus has been on vaccines, notably its COVID-19 vaccine, which is its first commercially approved product.

Moderna, Inc. (NASDAQ:MRNA) has faced significant challenges recently, leading to a decline in its stock price, which makes Moderna, inc. stand among the worst performing healthcare stocks. The company announced plans to cut its Research and Development (R&D) budget by approximately 20% over the next three years due to low sales projections and disappointing vaccine sales. This includes discontinuing five R&D programs to save $1.1 billion annually by 2027. Additionally, Moderna provided cautious sales guidance for 2025 and aims to achieve break-even by 2028.

Short-term headwinds include declining COVID-19 vaccination rates and a slow ramp-up for its RSV vaccine. Of the ten new products expected by 2027, Moderna, Inc. (NASDAQ:MRNA) plans to file for approval for three this year: a new COVID/flu vaccine, a next-gen COVID vaccine, and an RSV vaccine for high-risk adults aged 18 to 59.

Despite these challenges, Wall Street remains optimistic about Moderna, Inc. (NASDAQ:MRNA)’s future, particularly regarding the rollout of its RSV vaccine, mRESVIA, in the US, and positive feedback from the European Medicines Agency. The company’s pipeline is also showing progress, with encouraging Phase III results for its flu and COVID-19 combo vaccine, supported by recent partnerships with BARDA and Mitsubishi Tanabe Pharma.

Moderna, Inc. (NASDAQ:MRNA) anticipates a 40%–50% sales increase in Q3 2024 and aims to end the year with approximately $9 billion in cash, expecting to return to growth in 2025. The company is optimistic about sales contributions from the EU market in 2025 and 2026. Moderna continues to adapt to the evolving vaccine market through new product rollouts and partnerships.

Overall, MRNA ranks first among the 10 worst performing healthcare stocks in 2024. While we acknowledge the potential of healthcare companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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