moderna’s CNBC’s Jim Cramer said Wednesday that the expansion of the pipeline beyond infectious diseases is giving investors new reasons to own stocks after years of uncertainty following the COVID-19 pandemic.
“For the first time in a while, it looks like the company has something to be excited about,” the “Mad Money” host said before advising investors to be patient.
“I recommend waiting for a rebound before buying. Take your time. I think Moderna has a bright future, but it will take years to get there,” he said.
Moderna has soared nearly 150% this year, making it one of the best-performing stocks in the S&P 500 and one of the few high-flying stocks unrelated to the artificial intelligence infrastructure boom. Still, the company’s stock remains well below its pandemic-era record closing price of $484 in August 2021, as revenue from its coronavirus vaccine soared. But for the past few years, investors have been waiting for the company’s next major growth driver.
Kramer says that trend is starting to emerge. “For the first time in a long time, Moderna has a wealth of thoughtful new products and a clear roadmap to profitability,” he said.
At Moderna’s Science Day last Thursday, Kramer said the company laid out a detailed roadmap for the next 10 years focused on its growing cancer pipeline alongside new vaccine programs beyond the coronavirus series.
Since then, Moderna stock is up about 20%, so “no wonder Moderna stock is on fire,” he said.
Moderna’s commitment to oncology really stood out to Kramer. The company is currently conducting mid- to late-stage clinical trials for cancer treatment drugs targeting melanoma, non-small cell lung cancer, renal cell cancer, and bladder cancer. He said he is particularly excited about results expected later this year from a late-stage study investigating Intismeran, a personalized cancer treatment jointly developed by Moderna and Moderna. Merck — Used in combination with Merck’s Keytruda as a second-line treatment for melanoma.
Kramer said the new focus on cancer marks an important shift for the company, which has spent much of the past few years trying to make up for lost revenue from declining demand for coronavirus vaccines.
The company is also making progress in other areas of its pipeline. A Food and Drug Administration advisory panel recently recommended approval of Moderna’s experimental influenza vaccine ahead of the regulator’s Aug. 5 decision, while the European Commission approved the company’s combined coronavirus and influenza vaccine earlier this year.
Correction: This article has been updated to reflect that intismeran is being co-developed by Merck and Moderna.
