Why Moderna Stock fell nearly 10% on Monday

What happened

Although the FDA recently gave Emergency Use Clearance (EUA) to Modernof (NASDAQ: ARNM) The mRNA-1273 coronavirus vaccine, the company’s stock was a big misfire on Monday. This was likely due to scary news about a patient who received the vaccine before Christmas.

So what

The New York Times reported Friday that Dr Hossein Sadrzadeh, a geriatric oncology fellow at Boston Medical Center, said he developed a severe allergic reaction right after receiving his first dose of the two-dose diet of mRNA-1273.

Within minutes of receiving his injection, Sadrzadeh said he experienced dizziness and increased heart rate. He has been cleared to administer epinephrine with an EpiPen, which he keeps on hand due to a severe shellfish allergy.

Image source: Getty Images.

Boston Medical Center said that after his self-treatment, the doctor was “evaluated, treated, observed and fired.” He added that on Friday he was fine.

Moderna’s vaccine is only the second of two coronavirus vaccines to receive EUA; the first was Pfizer (NYSE: PFE) and BioNTechof (NASDAQ: BNTX) BNT162b2. Moderna obtained its clearance on December 18, six days after Pfizer and BioNTech received theirs.

Now what

No biotech investor wants to hear of a reaction like Sadrzadeh’s to their vaccine or drug, especially just days after it’s cleared by a regulator. We still don’t know exactly how effective 1273 mRNA will be in mass inoculations, but we must remember that occasional adverse reactions are not unusual for any vaccine or treatment. Moderna did not deserve such a sale on this news.