Modern: (NASDAQ: MRNA) and Teladoc Health: (NYSE: TDOC) They may not seem to have much in common. One develops messenger RNA (mRNA) vaccines և treatments, and the other is a leader in virtual care. However, in some ways the capabilities of these two companies are interrelated.
Both Moderna and Teladoc really made progress last year due to the COVID-19 epidemic. Moderna, of course, became a favorite for investors as it made remarkable progress in developing the COVID-19 vaccine. Teladoc became a major beneficiary of the epidemic when millions of people turned to virtual healthcare.
Even now, there is not so much a visible connection between the destinies of these two companies, but a certain one. So when Moderna’s management presented a potentially troubling scenario at the company’s last quarterly conference, Teladoc investors should pay attention. That’s why Teladoc shares could rise if Moderna’s horrific prediction comes true.
Moderna horror script
I’m not trying to be alarmed by using the word “horrible” to describe the potential scenario that Moderna President Stephen Hogg discussed in the company’s Q2 call. I use my own description of the Spirit.
During the study, the analyst asked how the coronavirus could mutate and develop. He responded.
If you think about how this could go, it seems logical to us that the three mutations in the beta, gamma line, the two mutations in the delta, could somehow be found to combine in potentially terrifying ways. And if the contagion increases at the same time, the severity of the infection that the delta can reach could be a significant threat.
It is possible, at least somewhat reassuringly, to understand the context of the Spirit’s interpretations. While acknowledging the potential threat from the new versions, he stressed that Moderna believes that its multi-credit mRNA vaccine development program can help overcome this threat.
However, Hogen added: “It simply came to our notice then. But we have to be careful and humble, because SARS-CoV-2 continues to amaze us. ” It seems to me that this is the right position.
Certainly a catalyst
How does Teladoc fit into the potentially terrible future described by Hogen? In my opinion, anything close to the scenario set by the President of Moderna will certainly provide a catalyst for Teladoc shares.
Hogge spoke of the “significant threat” potential posed by current mutations in coronavirus variants that combine to become more contagious. If this threat materializes, it is likely that many will choose to restrict their exit, even if governments do not lift the blockade. I suspect this will be especially true of doctor visits, as the scenario discussed by Hoge is more likely to be infected.
Shares of Teladoc rose in a similar environment last year. The health fund fell by about 50% from its peak in 2021, though largely because investors are concerned about the slowdown in the company’s membership growth.
It is a fairly safe bet that Teladoc membership will grow again if the image depicted in Moderna Q2 calls becomes a reality. Indeed, I expected that every key criterion of Teladoc would be significantly improved with a more worrying version at the scene.
The soul did not anticipate that there would inevitably be more deadly coronavirus strains along the way than the delta version. He used the word “horror” appropriately to describe a possible COVID-19 scenario. However, the Spirit also stated that Moderna predicts that the most likely way forward would be similar to other respiratory infections, recurrent, requiring annual vaccinations, but not catastrophic.
This could mean that Teladoc Health is not ready for a huge catalyst. I do not think there is anything to worry about in the future of a virtual care company.
The potential market for virtual care, including telecommunications and chronic disease management, is huge. Teladoc remains the leader in this market. Focusing on the whole person’s virtual care should give the company a strong competitive advantage over its competitors.
In the near future, the performance of Teladoc shares may continue to be related to what is happening with COVID-19 (hereinafter referred to as Moderna). In the long run, however, my view is that Teladoc will be a winner without relying on coronavirus issues.
This article presents the opinion of a writer who may disagree with the position of the “official” offer of Motley Fool Premium Consulting. We are motley! Investigating an investment thesis, even our own, helps all of us think critically about investing, making decisions that will help us become smarter, happier, and richer.