Why Moderna’s stock has skyrocketed today

What happened

Actions of Modern (NASDAQ: ARNM) jumped 10.5% on Wednesday after the National Institutes of Health (NIH) began testing the drugmaker’s experimental variant of the COVID-19 vaccine.

So what

Moderna’s new vaccine is designed to protect against a strain of coronavirus first identified in South Africa. The disturbing mutation – which scientists say could spread faster than earlier versions of the virus and be more resistant to currently licensed vaccines – has been detected in at least nine US states.

The NIH Phase 1 study will assess the drug’s efficacy and safety profile in 210 healthy adult volunteers. These participants will include 60 people who participated in the initial trial of Moderna’s coronavirus vaccine, as well as 150 people who have not yet been vaccinated. The NIH expects the study to be fully listed by the end of April.

“Preliminary data shows that the COVID-19 vaccines currently available in the United States should provide an adequate level of protection against variants of SARS-CoV-2,” said Anthony Fauci, director of the National Institute of Allergy and Disease. infectious diseases (NIAID) in a press release. . “However, out of caution, NIAID continued its partnership with Moderna to evaluate this variant of the vaccine candidate in the event of a need for an updated vaccine.”

Now what

The United States Food and Drug Administration (FDA) is expected to expedite the emergency clearance process for vaccines that defend against variants of the coronavirus. So, if it proves safe and effective, Moderna could get its new COVID-19 vaccine to market relatively quickly.

Moderna will likely have more to tell investors about its clinical trials during its next Virtual Vaccine Day on April 14.