Moderna faces disaster with stock plunge and index removal

In the United States, Moderna Inc., a prominent biotechnology company, has experienced significant challenges recently, culminating in its removal from the Nasdaq-100 Index during the Nasdaq Inc's annual reconstitution on December 23. This index removal is part of a broader trend of decline affecting Moderna and several other stocks, fueled by political concerns surrounding vaccine safety. The nomination of Robert F. Kennedy Jr. by Donald Trump for the Department of Health and Human Services has heightened tensions, as Kennedy has a history of making controversial and False claims regarding vaccines. Despite these setbacks, the company reported an uptick in third-quarter sales, attributed primarily to the successful launch of its updated COVID-19 vaccine in the U.S. market. However, this relief is overshadowed by the commercial difficulties faced by Moderna, evidenced by the decline in sales of its only approved product, Spikevax. In response to these challenges, Moderna is adopting a more selective and strategic approach to its research and development investments, prioritizing areas such as oncology and rare diseases. Additionally, Moderna is contending with several ongoing litigations that add complexity to its operations. Among the most notable is the patent infringement lawsuit filed by Northwestern University, which claims that Moderna utilized its proprietary lipid nanoparticle technology to create its COVID-19 vaccines without permission. Furthermore, GSK Plc has also alleged that Moderna infringed upon patents linked to its mRNA vaccines. These legal challenges may significantly impact the company's future growth and innovation potential. In summary, while Moderna seeks to navigate through its current challenges by focusing on R&D in oncology and rare diseases, the company must also address the ramifications of political opposition and ongoing legal disputes related to its vaccine technology.