Moderna Banks on Unproven Technology to Develop Covid-19 Vaccine

Article by Barry Cohen – GuruFocus.

Investors seem to like company’s chances, driving stock up more than 90% in the past 3 weeks

Hope for the best, but prepare for the worst. Investors in Moderna (MRNA) may want to keep that idiom in mind as the company strives to develop a vaccine for the novel coronavirus (Covid-19).

Shares of the Cambridge, Massachusetts-based biotech company have soared more than 60% from March 24 to April 16 on hopes the company will be successful in its quest. At more than $40, the stock is at a five-year high.

However, the technology being applied by Moderna has yet to be proven. It’s called messenger RNA, or mRNA, which uses molecules to coax the body into producing proteins, according to an article in Biopharma Dive. In addition to Covid-19, Moderna is conducting human testing on six other preventative vaccines for infectious diseases. […]

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