My take is that investors may be overreacting.
A source told STAT News the company wanted to make changes to the stage 3 trial plan. Although the source says these changes are common, a meaningful delay could push back Moderna’s aggressive goal to begin delivering key efficacy data ahead of Thanksgiving.
Its vaccine, according to a story at CNBC, contains genetic material called messenger RNA, or mRNA, code that tells cells what to build. The breakthrough idea Modern’s vaccine might be able to build an antigen that cause an immune response to the virus.
Investing in biotechnology stories is always rife with risk. This case is no exception. However, investors may be missing the larger point. By all accounts Moderna is ahead of Pfizer. Its late stage trials are not ending. They are being delayed.
I have always been of the opinion that a better way to invest in next generation biotechnology is Illumina ( (ILMN) - Get Report), the company that makes the hardware and software some 70% of researchers use to make sense of genomic sequencing.
It’s hard to know for certain what company wins the race to develop new drug treatments using genetic sequencing. Illumina wins regardless. Sometimes the best solutions are the most obvious.
Illumina shares trade at 47.8x forward earnings and 15.5x sales. Some will say the stock is expensive. That’s one way to look at it. Another is that the company has an important role in the future of game-changing drug therapeutics.