Could Moderna's Coronavirus Vaccine Be a $5 Billion Opportunity?

Despite concerted efforts to curb the spread of COVID-19, new cases of the disease continue to pop up at an alarming rate in several states. As evidence of this fact, consider that the states of California and Oregon have opted to halt the process of reopening their economies because of a spike in the number of new cases. Amid this chaos, the one thing that could truly end the pandemic is a vaccine. And among the companies working on developing vaccines for COVID-19, Moderna (NASDAQ: MRNA) is one of the leaders.

Given the vast market opportunity, the company's vaccine could bring in more than $5 billion per year if approved, at least according to Jefferies analyst Michael Yee. The analyst recently initiated coverage on Moderna's stock with a "buy" rating, sending the shares 14.8% higher. If Moderna's candidate, mRNA-1273, can generate annual revenue of more than $5 billion per year, it would become a significant growth driver. But before pulling the trigger, let's take a closer look at the context and figure out whether Moderna's mRNA-1273 could really turn into a multibillion-dollar opportunity.