modern Expanding the portfolio beyond infectious diseases is giving investors a new reason to own stocks after years of uncertainty following the Covid-19 pandemic, CNBC's Jim Cramer said Wednesday.
“For the first time in a long time, the company seems to have something to be excited about,” the “Mad Money” host said, before advising investors to be patient.
“I recommend waiting for a pullback before buying. Take your time. I think Moderna has a bright future, but it will take years to get there,” he said.
Moderna is up nearly 150% this year, making it one of the best-performing stocks in the S&P 500 and one of the few top gainers not tied to the rise of artificial intelligence infrastructure. Still, the drugmaker's stock remains well below its pandemic-era record close of $484 in August 2021, as revenue from its Covid vaccine rose. But for the past few years, investors have been waiting for the company's next big growth engine.
That's starting to show up, according to Cramer. “Moderna has a host of thoughtful new products and a clear roadmap to profitability for the first time in a long time,” he said.
At Moderna's Science Day last Thursday, Cramer said the company presented a detailed roadmap for the next decade that highlighted its growing pipeline of cancer projects along with newer vaccine programs beyond its Covid franchise.
“It's no surprise that Moderna stock has skyrocketed,” he said, as the stock is up about 20% since then.
Moderna's oncology efforts really caught Cramer's attention. The company currently has cancer therapies in mid- and late-stage trials targeting melanoma, non-small cell lung cancer, renal cell carcinoma and bladder cancer. He said he was particularly excited about results expected later this year from a late-stage study examining intismeran, an individualized cancer therapy jointly developed by Moderna and merck — used in combination with Merck's Keytruda as a secondary treatment for melanoma.
Cramer said the renewed emphasis on cancer marks a major shift for a company that has spent much of the last few years trying to replace lost revenue as demand for Covid vaccines faded.
The company has also made progress in other aspects of its portfolio. A Food and Drug Administration advisory committee recently recommended approval of Moderna's experimental flu vaccine ahead of an Aug. 5 regulatory decision, while the European Commission approved the company's Covid-flu vaccine combination earlier this year.
Correction: This story has been updated to reflect that Merck and Moderna are jointly developing intismeran.
