Moderna (MRNA) is seeking to charge between $50 to $60 for a course of its coronavirus vaccine mRNA-1273, according to a report from the Financial Times.
The report, which cites people familiar with talks between the company and potential buyers, notes that this price is higher than other vaccine makers are charging governments. However the price has not yet been fixed.
According to the Financial Times, this particular price point applies to high-income countries such as the US- which the sources say is the market that Moderna is specifically prioritizing.
At $50-$60, Moderna would be charging $25-$30 per vaccine dose. In comparison Pfizer (PFE) and BioNTech have just announced a US government, pre-order deal at $19.50 per dose, with AstraZeneca’s vaccine priced at about $3-$4 per dose in its recent deal with the Netherlands, Germany, France and Italy (according to calculations by SVB Leerink).
Indeed, one of the Financial Times sources said that the price “causes considerable concern and difficulties in negotiations, in view of the fact that other companies have pledged much lower prices.” Meanwhile Stephen Hoge, Moderna’s president, recently said: “We will not sell it at cost.”
Shares in Moderna have now tripled year-to-date, and Wall Street analysts have a Strong Buy consensus on the stock’s outlook. That breaks down into 13 buy ratings vs 4 hold ratings in the last three months. The $91 average price target suggests an additional 11% upside potential lies ahead. (See MRNA stock analysis on TipRanks).
In a bullish note, five-star analyst Hartaj Singh at Oppenheimer recently assigned a Buy rating on the stock with a $108 price target suggesting shares have room to gain another 32% over the coming year.
“We do see a tricky period ahead for MRNA as logistics and discussions of commercialization (e.g., pricing) intensify,” Singh wrote in a note to investors on July 24. “We continue to see Moderna as well-positioned to navigate these waters, based on the company’s impressive execution in the clinic, thoughtful commentary on the clinical/commercial landscape, and delivered results. Hence, we would buy MRNA.”
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