MRNA Stock: Moderna Shares Surge on Covid-19 Vaccine News

Moderna (NASDAQ:MRNA) is giving the entire world a reason for optimism Monday morning, and MRNA stock is surging as a result. Importantly, the vaccine maker shared big news regarding its novel coronavirus vaccine candidate. So what exactly do investors need to know?

The Moderna (MRNA) logo surrounded by syringes, pills and disposable face masks.

Source: Ascannio / Shutterstock.com

To start, what exactly is the big news? Well, after initial analysis, Moderna shared that its vaccine is 94.5% effective against the coronavirus. This comes after an update last week that the company had wrapped up data accumulation for its Phase 3 trial.

This is a big deal. Just last week, duo Pfizer (NYSE:PFE) and BioNTech (NASDAQ:BNTX) reported that their vaccine was as much as 90% effective against the coronavirus. Now that Moderna is back at the front of the race, investors are likely excited. Plus, two promising vaccines may just be better than one.

So what else do you need to know? Moderna completed this initial analysis on a 30,000-participant trial. Of those participants, 95 individuals contracted Covid-19. Importantly however,90 of the 95 sick participants were taking the placebo. Additionally, of the 11 more severe cases that developed during the trial, all were part of the placebo.

This balance of cases then translates to the 94.5% effectiveness rate for the vaccine candidate.

So what are the next steps? Moderna released this initial analysis in the form of a press release, which means it still has to go through more official channels. These data will be submitted for peer review, and Moderna will then share more final results. Investors should note that the company is warning that the overall effectiveness could change as the data go through more review. After that, Moderna is a participant in Operation Warp Speed, through which it has received $2.5 billion.

Why the Vaccine Really Matters for MRNA Stock

Beyond the initial excitement, there are two even bigger reasons why this news matters for MRNA stock. The first is that this vaccine candidate has one edge over the candidate from Pfizer and BioNTech. Unlike that other vaccine, Moderna says its candidate could be stored at refrigerator temperatures for up to a month. Pfizer and BioNTech say that their candidate requires ultra-cold conditions, potentially posing challenges for transportation and deployment.

Essentially, as cases continue to rise, the easier it is to widely deploy the coronavirus vaccine, the better.

This fact ties into the other major catalyst behind MRNA stock. Unfortunately, this weekend brought a lot of bad news about the coronavirus situation in the U.S. Several state governors are ramping up restrictions, and new cases continue to rise. As consumers and businesses brace for the impact of the second wave, it is clear that Americans are hoping for a vaccine. Therefore, as MRNA stock ups the promise for such an effective vaccine, investors are handsomely rewarding it.

Moderna shares were up 10.8% this morning.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Sarah Smith is a Web Content Producer for InvestorPlace.com. 


Article printed from InvestorPlace Media, https://investorplace.com/2020/11/mrna-stock-moderna-shares-surge-on-covid-19-vaccine-news/.

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