Moderna (NASDAQ:MRNA) experienced a significant rally on Friday, with shares climbing 13.9% to $68.06, far outpacing the broader biotech sector. The SPDR S&P Biotech ETF (XBI) and iShares Biotechnology ETF (IBB) both gained 2.7% during the same period.
The move added approximately $3.3 billion to Moderna's equity value, based on its 395 million weighted average shares outstanding from the first quarter. That figure surpasses the company's projected $3.0 billion research and development spending for 2026 and represents nearly 44% of Moderna's $7.5 billion in cash, cash equivalents, and investments as of March 31.
Science Day unveils new pipeline candidate
The catalyst for the surge was Moderna's Science Day on June 25, where the company introduced mRNA-6007, an in vivo CAR-T program targeting autoimmune diseases. The candidate aims to eliminate B cells in conditions such as systemic lupus erythematosus, with the first clinical trial expected to focus on that indication.
Moderna CEO Stéphane Bancel emphasized the platform's potential, stating the company is "building a platform capable of repeatedly creating new medicines." He also reiterated the goal of achieving cash breakeven by 2028.
Technology and market implications
Moderna's mRNA-6007 utilizes targeted lipid nanoparticles and multiplexed mRNA to deliver genetic material into immune cells, aiming for temporary CAR expression and potentially an immune reset. The company believes this delivery technology could extend to other autoimmune diseases and eventually oncology applications.
Lin Guey, Moderna's chief scientific officer for therapeutics research, described the approach as a "scalable, controllable way to reset pathogenic B-cell immunity," according to pharmaphorum's summary of the event. Investigational new drug studies have commenced, though human testing has not yet begun.
The rally pushed Moderna shares to their highest level since September 2024, making it the top performer in the S&P 500, as reported by Barron's. Jefferies analyst Andrew Tsai noted that the in vivo CAR-T and T-cell engager efforts could "meaningfully diversify the mRNA pipeline," but he pointed to Phase III melanoma data due in late 2026 as a more significant catalyst for the stock.
Analyst reactions and financial outlook
Piper Sandler's Edward Tenthoff raised his price target on Moderna to $77 from $69, maintaining an Overweight rating, which implies roughly 13% upside from Friday's price. In contrast, BofA Securities has an Underperform rating with a $34 price target, highlighting the bearish sentiment from some corners.
Despite the positive news, Moderna continues to face financial headwinds. The company reported first-quarter revenue of $389 million and a GAAP net loss of $1.3 billion. Cash and investments declined to $7.5 billion from $8.1 billion at year-end 2024. Moderna expects year-end cash and investments for 2026 to be in the range of $4.5 billion to $5.0 billion.
Moderna's core focus remains on vaccines, with products including Spikevax, mNEXSPIKE, and mRESVIA. The company's pipeline encompasses 35 programs in vaccines and therapeutics, with six in late-stage development.
