10 Worst Performing Stocks in S&P 500 in 2024

3. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 39

Year to Date Share Price Performance: -53.07%

Moderna, Inc. (NASDAQ:MRNA) is a significant player in the field of mRNA medicine, having developed innovative treatments and vaccines for various diseases, including infectious diseases, cancer, and rare genetic conditions. Its mRNA platform enabled the rapid creation of Spikevax, one of the earliest COVID-19 vaccines, which has been widely distributed globally.

Its mRNA technology uses the body’s natural protein production system to create tailored treatments by instructing cells to produce specific proteins. This process mimics biological protein creation and offers advantages over traditional medicines.

Moderna’s (NASDAQ:MRNA) stock had an incredible start to the year and was up nearly 50% between the start of the year and May 24. However, the company’s stock started to have a mixed performance afterward due to several reasons. The company experienced a significant drop in its stock price after reducing its revenue outlook during Q2 results, due to decreased demand for its COVID-19 vaccine in Europe and a challenging market in the U.S. Factors contributing to this revision were minimal sales in the European Union for 2024, possible delays in international sales until 2025, and growing competition in the U.S. for respiratory vaccines.

Nevertheless, building on the success of its COVID-19 vaccine, Moderna (NASDAQ:MRNA) is developing a broad pipeline of several programs that span infectious diseases, cancer, autoimmune conditions, and rare diseases. Over the next five years, it aims to launch up to 15 new products, including vaccines for COVID-19, flu, and RSV, along with therapies targeting latent viruses, cancer, and rare diseases.

Moderna’s (NASDAQ:MRNA) recent R&D Day highlighted the strategic prioritization of its mRNA pipeline, with an emphasis on respiratory and non-respiratory vaccines. The company announced that five respiratory vaccines have achieved positive Phase 3 results, with three expected to be submitted for approval in 2024.

The company is also advancing five non-respiratory products in studies across cancer, rare diseases, and latent vaccines, aiming for approvals by 2027. The company’s R&D success rate is notably higher than the industry average, with a combined probability of success in mid and late-stage development at 66%. However, the company plans to reduce its annual R&D spending by about $1.1 billion starting in 2027, as it focuses on its late-stage pipeline, including cancer vaccines and therapies for rare diseases.

Moderna (NASDAQ:MRNA) is shifting focus to oncology and rare disease therapeutics, expecting 2025 revenues between $2.5 and $3.5 billion. It plans to achieve break-even by 2028 with sufficient capital to fund operations without raising new equity as it has $10.8 billion in cash reserves as of Q2 2024.