What Happened?

Shares of biotechnology company Moderna (NASDAQ: MRNA) fell 6.9% in the afternoon session after ongoing concerns about its financial performance and a recent clinical setback overshadowed an announcement about a new, early-stage study. 

While Moderna announced it had dosed the first patient in a Phase 1/2 study for a multiple myeloma therapy, investors looked past this development. Instead, attention remained on the company's challenging financial situation. The company's Q2 2025 revenues had fallen, with product sales down 38% from the previous year, and other financial metrics showed significant negative margins. Moreover, analysts forecasted the company would report a substantial quarterly loss with revenues declining by over 53% compared to the year-ago quarter. The negative sentiment was also compounded by the recent failure of a separate, late-stage vaccine trial, which tempered any optimism from the day's announcement.

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What Is The Market Telling Us

Moderna’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 3.5% on the news that the stock retreated, giving back some of the strong gains from the previous session that were fueled by reports of potential buyout or partnership discussions. The stock had surged nearly 14% during the prior trading day. This significant jump was driven by multiple reports indicating Moderna was in strategic negotiations with at least one major pharmaceutical company regarding a potential acquisition. The speculation came as the biotech firm had faced pressure from tapering sales of its COVID-19 vaccines. The decline represented a partial reversal of the previous session's sharp rally as some of the initial excitement appeared to cool.

Moderna is down 40.2% since the beginning of the year, and at $25.13 per share, it is trading 53.1% below its 52-week high of $53.54 from November 2024. Investors who bought $1,000 worth of Moderna’s shares 5 years ago would now be looking at an investment worth $363.74.

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