Company Analysis - Moderna

Company Analysis - Moderna
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January 30, 2023
Understanding a business's history, capability, and trajectory in relation to its internal and external environment is essential for every investor. It allows him to strategically make decisions, which would reduce risks and increase profits. In this article, the author would like to focus on Moderna, which has become a world-renowned company following the COVID-10 Pandemic. The following sections will discuss the company, its stakeholders, the impact of the socio-political environment, and its history, to name a few. All in all, the author believes that knowing these circumstances is essential for strategic investment decisions.
Moderna's Business and Purpose
Moderna was founded in Cambridge, Massachusetts, in 2011 to develop and commercialize messenger RNA (mRNA) technology for therapeutic and preventive vaccines and treatments (Moderna, n.d.). The company then sold and developed mRNA-based therapeutics and vaccines for infectious diseases, immuno-oncology, and cardiovascular disease. Additionally, its primary purpose is to serve the economy by providing new and innovative ways to prevent and treat diseases, helping to improve public health and potentially reducing healthcare costs.
Moderna's Stakeholders
Although several stakeholders affect Moderna's operations, some of the most important ones are; (1) investors, (2) customers, and (3) regulators.
First, Moderna's investors provide funding for research and development and expect returns on their investment. Since Modern is a publicly-traded company with a diverse pool of investors, this is a very varied group of individuals, which ranges from individual and institutional investors to mutual funds, pension funds, and other financial institutions. Nonetheless, some of the largest institutional investors in Moderna include mutual fund companies such as Fidelity Investments, BlackRock, and Vanguard Group, as well as investment management firms such as Wellington Management and The Goldman Sachs Group (Fichtner et al., 2017).
Accordingly, Moderna's customers are various companies and nation-states, especially with the onset of the Covid-19 Pandemic. The company produced millions of vaccines to be distributed to millions of people around the world.
Finally, another important stakeholder is the regulators within and outside the United States. This includes the (1) U.S. Food and Drug Administration (FDA), (2) European Medicines Agency (EMA), (3) Centers for Disease Control and Prevention (CDC), and the (4) World Health Organization (WHO).
Each stakeholder group plays a crucial role in the success of the company and its work. In contrast, the others drive the demand and ensure the safety and efficacy of Moderna's products, and communities help shape the company's reputation and social impact.
Social Environment and Moderna's Business Activities
Moderna's business has been shaped by several key social trends and factors, both internal and external, to the company environment.
First, the rise of health and wellness as a social and cultural priority has driven demand for innovative solutions that can help prevent and treat diseases. Moderna's mRNA-based therapeutics and vaccines address this demand by offering new and effective ways to combat infectious diseases, cancer, and other health issues.
Second, the growth of international travel and the increased global interconnectedness of communities have heightened concerns about the spreading of infectious diseases. Moderna's mRNA-based vaccines can play a crucial role in addressing these concerns by providing a faster and more flexible means of responding to outbreaks similar to what happened during the COVID-19 Pandemic (Barcelona Institute for Global Health, n.d.).
Moreover, finally, the growing public awareness of environmental and sustainability issues has influenced Moderna's business by shaping public opinion and consumer preferences. The company has responded by pursuing environmentally responsible manufacturing processes and investing in sustainable solutions, such as developing a sustainable technology center (Business Wire, n.d.).
Effect of Business Competition and Government Regulations
Similar to other factors, government regulations and competition from other companies have influenced Moderna's products and operations.
First, Moderna's products are subject to rigorous regulatory oversight by the U.S. Food and Drug Administration (FDA) and other regulatory bodies. This includes requirements for clinical ...