Oppenheimer predicts Moderna could launch multiple products in the next two years, causing its stock to rise.

• Moderna's stock price increased following Oppenheimer's upgrade, predicting that the company could market up to five Covid vaccine products by 2026.
• Despite a disappointing 2023, Moderna remains focused on upgrading its product offerings beyond its Covid shot.
• Hartaj Singh, an Oppenheimer analyst, expressed optimism about Moderna's pipeline potential, emphasizing upcoming product launches within the next 12 to 18 months that could significantly increase sales in 2025.

On Tuesday, shares of the Covid vaccine maker closed more than 13% higher after Oppenheimer upgraded the stock to “outperform,” predicting that the company could market five products by 2026.

Despite a disappointing 2023 for Moderna, which currently has only its Covid shot as its commercially available product, the company's stock has been linked to its vaccine and its shares dropped nearly 45% last year as the demand for Covid products decreased globally.

Hartaj Singh, an Oppenheimer analyst, predicts that the company's Covid sales may decline in 2024 due to vaccine fatigue. However, the company anticipates a rise in Covid vaccine sales in 2025 and beyond as public education about the disease and related spending increase.

Singh highlighted a number of potential product launches from Moderna's pipeline that could increase sales in 2025, with a positive outlook on the company's prospects.

This year, Moderna's experimental vaccine may receive approval to safeguard older adults from respiratory syncytial virus, which can cause severe symptoms in seniors and children.

The Food and Drug Administration will make a decision on the company's RSV vaccine in April, as stated by the company.

The experimental flu vaccine from Moderna may receive approval in 2024 or 2025, according to Singh. In September, the company announced that its vaccine generated a stronger immune response against four strains of the virus compared to the currently available flu vaccine in a late-stage trial.

Moderna could file for FDA approval of its experimental personalized cancer vaccine in 2024 or 2025, according to Singh. The company may apply under the FDA’s accelerated approval pathway, which allows for expedited approval of drugs that treat serious conditions and fill what the agency calls an “unmet medical need” based on a specific clinical trial metric.

Moderna and its partner are currently investigating the use of Keytruda, Merck's blockbuster therapy, in combination with Moderna's shot for the treatment of patients with deadly skin cancer called melanoma and other cancers.

On Tuesday, Moderna announced in a shareholder letter that it anticipates sales growth in 2025. The company emphasized its RSV vaccine and the potential approval of its combination shot targeting Covid and the flu, which could occur "as early as 2025."

In its third-quarter earnings release in November, Moderna announced that it anticipates revenue to decline to $4 billion in 2024 before experiencing growth in 2025. The company expects to achieve profitability in 2026. Additionally, Moderna revealed in November that it would only meet the lower end of its sales forecast of $6 billion to $8 billion for 2023 due to weaker demand for Covid vaccines.

Moderna aims to introduce up to 15 new products within the next five years, as previously stated during its September research and development event.

Last year, Moderna shares experienced a decline of approximately 45%.