2 Concerning Trends That Make Moderna a Risky Buy
Next year is going to be challenging for COVID-19 vaccine maker Moderna (NASDAQ: MRNA). With up to $19 billion in revenue this year potentially coming from its vaccine, there could be a sizable drop off in sales next year, even if health officials continue to administer booster shots. The company's pipeline is by no means bare, but it won't be easy to make up for a significant decline in revenue. In the U.S., Moderna projects the COVID vaccine market could be worth between $5.2 billion and $12.9 billion, depending on the price that it obtains per shot.
But there are a couple of trends that could make the stock even riskier next year. Before investors decide to buy the healthcare stock, they should consider the following two items:
For the first three quarters of the year the company has incurred operating expenses totaling $6.3 billion. That's an increase of 88% from the same period last year. While some of the company's expenses will decline if the business isn't as busy, some could remain elevated. Selling, general and administrative costs have doubled to $757 million, and research and development costs of over $2 billion are also up over 55%.
Source Fool.com
