What makes a top growth stock? A company that has a track record of revenue increases -- and products or services that could drive earnings over time. And this company also should have a solid amount of cash on hand to support all of this.
Finally, this player should have something that helps it stand out within its industry. That could be a game-changing technology that powers its products, for example.
Now here's some great news: With only $150, you can invest in such a company. And that company is biotech Moderna (MRNA -0.16%). It's generated billions of dollars thanks to its coronavirus vaccine -- but the company has other major growth drivers on the way. Let's find out more about this ultimate growth stock to buy now.
More than $17 billion in sales
First, a bit of background. Moderna jumped to the forefront when it began developing a coronavirus vaccine candidate -- and brought it from drawing board to market in less than a year. That product generated more than $17 billion in annual sales over the past two years. Moderna became profitable -- and has built up more than $18 billion in cash.
Some investors have worried about the post-pandemic Moderna, though, since vaccine demand is on the decline, and the coronavirus vaccine/booster is Moderna's only commercialized product. Moderna says it has about $5 billion in confirmed orders for its vaccine this year. That number could increase -- but it's still far from the level we've seen over the past couple of years.
So where will Moderna's future growth come from? The answer has two parts.
First, coronavirus vaccine demand isn't disappearing altogether. Moderna predicts the post-pandemic market will follow that of the flu. In the U.S. alone, about half of Americans go for flu shots. So the coronavirus vaccine still could bring in blockbuster revenue.
Second, Moderna's pipeline includes more than 40 programs. Today, three candidates outside the coronavirus program are in phase 3 trials -- and close to the finish line. These are vaccine candidates for respiratory syncytial virus (RSV), cytomegalovirus (CMV), and flu. Moderna aims to file for regulatory approval of the RSV candidate in the first half of this year.
The other two should follow in the next couple of years. And the three candidates each represent billion-dollar annual revenue opportunities.
An important acquisition
Moderna's enormous cash level should help it bring these and other products through development -- and it's also helping the company grow through acquisitions. Earlier this year, Moderna announced the acquisition of Japan's Oriciro Genomics. This is a key move because Oriciro's technology will help Moderna speed up its processes.
And speaking of processes, that leads me to Moderna's technology. The company is an expert in messenger RNA medicine. Moderna uses mRNA to instruct the body to make certain proteins that will prevent or treat various illnesses. And one big plus here is that creating mRNA vaccines is faster than creating traditional vaccines.
Moderna is applying its technology across a wide range of treatment areas. The company recently reported positive data from a phase 2 trial of its personalized cancer vaccine combined with Merck's Keytruda. In fact, the U.S. Food and Drug Administration even granted the combination a breakthrough therapy designation. This is meant to accelerate the development of promising products for serious conditions.
All of this means that, yes, growth is set to slow this year -- a year of transition for Moderna. But the future looks bright, with many huge potential growth drivers right around the corner.
Moderna has helped investors win over time. The stock has climbed nearly 700% over the past five years. Considering the lull expected this year, though, Moderna's shares have declined -- to about $150. So, you can pick up one share of the company with your $150 to get in on this story before the next exciting phase of growth.
