1. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 44
PE Ratio as of February 8: 6.19
Moderna, Inc. (NASDAQ:MRNA) is one of the most undervalued biotech stocks to buy according to hedge funds. Moderna, Inc. (NASDAQ:MRNA)’s PE ratio stands at about 6.19 as of February 8. Recently, the FDA gave Breakthrough Therapy Designation for Moderna, Inc. (NASDAQ:MRNA)’s mRNA vaccine candidate for seasonal pathogen respiratory syncytial virus (RSV). FDA’s decision was based on initial data from Moderna, Inc. (NASDAQ:MRNA)’s ConquerRSV Phase 3 pivotal trial.
Hedge fund sentiment for Moderna, Inc. (NASDAQ:MRNA) is strong. As of the end of the third quarter of 2022, 44 hedge funds reported owning stakes in Moderna, Inc. (NASDAQ:MRNA), according to Insider Monkey’s database of 920 funds. The net worth of these stakes was about $2 billion.
Baron Funds made the following comment about Moderna, Inc. (NASDAQ:MRNA) in its Q4 2022 investor letter:
“We added to our position in Moderna, Inc. (NASDAQ:MRNA), a market leader in medicines made of messenger RNA (mRNA). We think Moderna has a competitively advantaged platform that allows the company to develop medicines and manufacture them at scale more rapidly than other classes of medicines. We believe that as COVID transitions to an endemic phase, annual COVID booster volumes could approximate flu vaccine volumes over time. The worldwide annual flu vaccine market consists of 500 million to 600 million vaccine doses. Assuming COVID boosters are combined with flu and RSV vaccines in one shot, and depending upon assumptions for vaccine pricing and market share, we think the annual recurring revenue opportunity for respiratory vaccines is at least $5 billion to $10 billion. Beyond this base business, Moderna has a large pipeline of development programs, including vaccines against latent viruses (such as CMV, EBV, and HIV), and medicines for cancer and rare diseases. Just recently, Moderna announced that its personalized cancer vaccine in combination with Merck’s Keytruda demonstrated a statistically significant and clinically meaningful reduction in the risk of disease recurrency or death compared to Keytruda monotherapy in stage III/IV melanoma patients with high risk of recurrence following complete resection. These results are the first demonstration of efficacy for an investigational mRNA cancer treatment in a randomized clinical trial. Additionally, Moderna has roughly $18 billion of cash on its balance sheet as of December 31, 2022.”
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