$166 billion valued Moderna may become even bigger
<p> Share prices of Moderna (NASDAQ: MRNA), the Covid-19 vaccine maker, rose more than 7% on Monday, closing at $411,89. The company, which was the biggest biotech to go public (Dec 2018) is now the top performer in the S&P 500 index in 2021, surging around 267% since the start of the year. The company reported $5.9 billion Covid-19 vaccine sales in the first half of 2021 and has signed $20 billion worth of purchase agreements for its vaccine this year and a projected $8 billion for next year.  <p>

<p>While many wonder if the company’s market capitalization, which is now roughly $166 billion will soon cross the $1 trillion mark in case it sustains the current growth levels, some analysts question the rally, viewing biotech as overhyped and becoming detached from its value proposition.<p>

<p>According to the estimates by Bank of America earlier this month, the company’s 200 billion market capitalization (start of August) is only justified in case it manages to sell yearly $1-1.5 billion vaccines from 2022 to 2038.<p>
<p>However, as Covid-19 is becoming endemic, the company’s sales are going to fall, already seen by the projected $8 billion for 2022 vs. $20 billion in 2021. And it’s not realistic to think that the company will be able to sustain its early-stage success for longer periods. <p>

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