Jim Cramer says this former Covid market darling is finally investable again
Modernity Expanding the pipeline beyond infectious diseases gives investors a new reason to own the stock after years of uncertainty following the Covid-19 pandemic, CNBC’s Jim Cramer said on Wednesday.
“For the first time in a long time, the company seems to have something to be excited about,” the “Mad Money” host said, before advising investors to be patient.
“I recommend waiting for a dip before buying. Take your time. However, I think Moderna has a bright future, but it will take years to get there,” he said.
Moderna is up nearly 150% this year, making it one of the best-performing stocks in the S&P 500 and one of the few top gainers not tied to the artificial intelligence infrastructure boom. Still, the drugmaker’s shares remain well below their pandemic-era record closing price of $484 in August 2021 as revenue from its Covid vaccine surged. But investors have been waiting for the company’s next big growth driver for several years.
According to Cramer, this is gradually becoming apparent. “For the first time in so long, Moderna has a wealth of thoughtful new products and a clear roadmap to profitability,” he said.
At Moderna’s Science Day last Thursday, Cramer said the company laid out a detailed roadmap for the next decade, highlighting its growing cancer pipeline alongside newer vaccine programs beyond its Covid franchise.
“It’s no wonder Moderna stock caught fire,” he said, as the stock has risen about 20% since then.
Moderna’s oncology efforts really stood out for Cramer. The company currently has mid- and late-stage cancer therapies targeting melanoma, non-small cell lung cancer, renal cell carcinoma and bladder cancer. He said he was particularly excited about the results expected later this year from a late-stage study evaluating intismeran – an individualized cancer therapy co-developed by Moderna and Merck — used in combination with Merck’s Keytruda as a second-line treatment for melanoma.
Cramer said the renewed focus on cancer represents an important shift for a company that has spent much of the last few years trying to offset lost sales caused by waning demand for Covid vaccines.
The company has also made progress elsewhere in its pipeline. A Food and Drug Administration advisory committee recently recommended approval of Moderna’s experimental flu vaccine ahead of a regulatory decision on August 5, while the European Commission approved the company’s combined Covid and flu vaccine earlier this year.
Correction: This story has been updated to clarify that Intismeran is being co-developed by Merck and Moderna.
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