Several companies across the world including Moderna Inc. (NASDAQ:MRNA) are in a race to develop a vaccine for the novella coronavirus. Moderna’s stock which was flying has since pulled back from mid-May.
It is a trend common with biotech stocks and this retracement might be an opportunity for another start. The recent positive developments justified the case of Moderna stock that it could return to its highs.
Moderna posts positive Phase 1 mRNA-1273 trial data
Biotech stocks are sensitive to new developments and with the coronavirus, the sensitivity has been heightened. At some point news from one biotech could trigger changes in the whole stock market. This was evident On May 18 when Moderna jumped 20% after publishing positive preliminary results from the first phase of its vaccine candidate called mRNA-1273.
Following the release the S&P 500 moved 3.2% which is an indication that Moderna is becoming a household name among traders as well as a market mover. Tal Zaks, Moderna’s Chief Medical Officer indicated that the interim Phase 1 results were encouraging. He indicated that mRNA-1273 resulted in immune response for natural caused infection beginning with a dose of 25 µg. He added that they are optimistic that mRNA-1273 can prevent coronavirus and thus help in selecting a dose for vital trials.
Moderna ready to ramp production following an agreement with CordenPharma
The company is exuding confidence in the ability to develop a vaccine and already the company has started thinking about how to get the vaccine to the public. The company recently announced a collaboration agreement that will help it handle supply concerns of the vaccine should it succeed in finding one.
The company indicated that the pharmaceutical-manufacturing platform, CordenPharma, will provide lipids for mRNA-1273 in large volumes. CordenPharma is already prepared to scale production and the expanded agreement will commence immediately to meet Modern’s growing demand in the coming months. Moderna is expected to soon commence the second phase mRNA-1273 trials.