A researcher works in the lab at the modern ink headquarters on Tuesday, March 26, 2024 at Cambridge, Massachusetts, US.
Adam Glenzmann | Bloomberg | Getty images
Covid-19 epidemic changed Moderna And Biontech Almost overnight in domestic names. Now both companies are on different paths.
Both Modern and Biontech helped Pioneer MRNA, or Messenger RNA, Technology. Modern stopped its entire identity around the MRNA, while Biontech saw it as a piece of a broad portfolio centered on immunology and oncology. The epidemic gave the two companies a chance to prove the promise of MRNA to protect the virus from viruses or to treat diseases.
Covid vaccines have sold around $ 45 billion in sales for each company, earning them about $ 20 billion since their rollouts in late 2020. But despite the parallel boom after the epidemic, the vaccine manufacturers have taken their businesses in different directions – and Wall Street has seen.
Both companies have spent their covid vaccine windfall differently: Modern doubled on its MRNA pipeline, while Biontech used money to do and diversify deals, including one of the most emerging areas of cancer drugs. Today, Modern has about $ 8.4 billion cash; The German-based Biontech has € 15.9 billion (or $ 18.2 billion).
The deviation of both companies is even more in their stock performance. In the last one year, about 72%of modern stocks have slipped; Biontech shares have received around 29%.
Evercore ISI analyst Kori Kasimov said, “Just his name was made on the basis of epidemic and vaccine, which they brought to people around the world very soon to help us during that period.” “But now the approach they are taking and the approach to these two companies is different at this point.”
Investors will get a new look at the performance of both companies as they post quarterly results in the coming days. Modern is ready to report on Friday morning, followed by Biontech on Monday morning.
Modern on Thursday took another step to cut the cost as he announced About 10% slash of your workforce by the end of the year.
Separate priorities
Modern used its covid cash to manufacture its MRNA portfolio, especially vaccines. It invested in shots for flu, RSV and low-term viruses such as cytomegalovirus and norovirus.
“From our perspective, the epidemic actually showed that the science of the work we are doing, and the natural type of reaction to it was to continue and to continue that path,” said Stephen Ho, the chairman of the Modern.
Funding to such a large pipeline was not inexpensive. The company has begun to reduce expenses as the sale of its covid vaccine slide and has started struggling to establish a leg to establish its RSV vaccine conflict. But the clock is going on, Lerink analyst Mani Fourohar said.
“We are moving forward at a time where being a vaccine company is going to be more expensive, tedious and fantastic,” Fourohar, “Fourohar, Robert F. Citing a change in food and drug administration under the leadership of Kennedy Junior, he said, who expressed doubt about the vaccine.
In 2022, Fourohar explained what he saw as a Shakespeareian tragic defect in the modern business model. In his view, it is lacking that the modern has scaled its pipeline that MRNA technology will be equipped for all problems rather than solving certain problems.
Hoge said that Modern decided to focus on doing “MRNA really good in making medicines” and on doing so.
“The reality is that we think over the last 10 years, that focus has really made us successful, and in the epidemic, it was definitely a big impact and obviously there was something that sets us to more diverse pipelines,” Ho said. “So we believe that we are undergoing some cycles, but we are very confident in the prolonged trajectory, and we are really capable of looking forward to show all the further drugs.”
On July 27, 2023, a MRNA model for individual MRNA-based cancer vaccines in a new feature of Germany, Germany, has been placed in front of the “Area 100 R&D” research laboratory.
Wolfgang Ratte | Roots
During this time, Biontech used income from its cobid vaccine to diverse. Partner led to selling companies out of the limelight as Fizer, Shot, Biontech promised new cancer technologies.
Most importantly, it acquired a bispecific antibody targeting protein PD-L1 and Veg-F. That technique has promised to manufacture – and possibly the best – success that Merc has found with Keitruda, a cancer drug that was about 30 billion dollars in sales alone last year.
That thesis still needs to be proved in large, global clinical trials, but Biontech is already paying that deal. Bristle myers squib In June, it was announced that he would pay up to $ 11 billion to participate with Biontech to codivel pilot drug, which Biontech acquired for a fraction of it. In 2023, Biontech initially paid biotheus $ 55 million to license the drug outside China before receiving the company outright up to $ 1 billion earlier this year.
,[BioNTech] A property was found, they developed it, and then they found a pharma partner, it’s like a dream, “BMO analyst Ivan David Segarman said.” So they are really strategic in it, and I think they are adding too much diversification, making the story very rare, if you just focus on MRNA, vaccine and covid, and in my view, ”
At the same time, expectations are high that Biontech’s bispecific antibodies will work, which means that any disappointment further can damage the stock. Investor Summit is viewing the upcoming phase 3 test results from theraputics, which is testing a similar drug for lung cancer. They can help data – or injury – Stock of Biontech while it waits for data from its own study, Can be taken to 2028,
For modern, investors want to see if the sales of its covid and RSV vaccines may rebound. The company is also seeking FDA approval for MRNA flu shot. But at this point, the most intensive focus is on the modern phase 3 test for a personal cancer treatment for melanoma, said Luka Isi, analyst of RBC Capital Markets.
The modern next year may be able to share the first interim data soon, Ho said, although the company may not promise an accurate date as it is a phenomenon-driven study. This means that the test requires analysis before modernizing enough people to analyze whether its treatment has prevented cancer from returning long. If treatment is successful, it can be launched in 2027 or 2028, Ho said.
This modernly depends on its vaccines to a large extent. Modern can also eat patent disputes going on on the Kovid -19 shot of Modern Cash, analysts say, they expect legal proceedings to play next year.
The time will tell whether the wall street wins the diversion strategy on the long term.
