Moderna (NasdaqGS:MRNA) Faces Legal Spotlight Affecting Investor Sentiment with -8% Dip Over Last Month

Recent legal challenges have put Moderna (NasdaqGS:MRNA) in a spotlight, as Genevant Sciences and Arbutus Biopharma Corporation have filed lawsuits alleging patent infringements related to lipid nanoparticle technology across numerous countries, affecting products like Spikevax®. This ongoing legal tussle has impacted investor sentiment, contributing to the company's share price decline of 8% over the month. Compounding this, general market trends showed volatility with a 3% decline. Despite tech gains, broader market uncertainties, including tariffs and economic concerns, have weighed on stocks like Moderna, which hit a five-year low amid these broader market trends.

Buy, Hold or Sell Moderna? View our complete analysis and fair value estimate and you decide.

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Over the last five years, Moderna's total shareholder return, including share price and dividends, amounted to an 18.16% decline. In a challenging landscape, legal and regulatory hurdles have played a significant role. One major event was the March 2025 lawsuits filed by Genevant Sciences and Arbutus Biopharma Corporation over patent infringements related to Moderna's lipid nanoparticle technology. Financial performance, notably in 2024, saw revenue fall to US$3.24 billion from US$6.85 billion in 2023, highlighting the drop in COVID-related product sales.

The company's exclusion from the NASDAQ-100 Index in December 2024 further exemplified declining investor confidence. Efforts at diversification, such as Health Canada's approval of the mRESVIA vaccine for adults, signal positive potential. However, inventory write-downs and a net loss of $3.6 billion in 2024 underscore continuing challenges. Over the past year, Moderna underperformed both the U.S. market and Biotech industry, with the market posting a 6.1% increase and the Biotech industry experiencing an 11.9% decline.

Our valuation report here indicates Moderna may be overvalued.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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