Why Moderna shares hit a new all-time high today

What happened

Actions of Modern (NASDAQ: mRNA) jumped 8.4% to a record high of $ 419.05 on Wednesday, as investors pushed up the share price of biotech ahead of its upcoming earnings announcement.

So what

Moderna said on Tuesday that the United States Food and Drug Administration (FDA) had granted Fast Track designation to its respiratory syncytial virus (RSV) mRNA vaccine candidate in adults over 60 years of age. RSV is a common respiratory virus that causes about 177,000 hospitalizations and 14,000 deaths in adults 65 and older each year, according to the United States Centers for Disease Control and Prevention.

The Fast Track designation will expedite the FDA’s review of Moderna’s drug. If the vaccine proves to be both safe and effective, Moderna could add a new source of income sooner than many investors expected.

Meanwhile, the rise in the number of COVID-19 cases, driven by the spread of the highly contagious delta variant, is leading government officials to reimpose mask warrants and other safety restrictions. New York City, for its part, said it would take proof of a coronavirus vaccination before people can work out in gyms and dine inside restaurants. Many companies and universities are also planning to require proof of vaccination from their employees and students.

Now what

Investors seem to be betting that these mandates will increase demand for Moderna’s COVID-19 vaccine. Shareholders can expect management to provide its most recent sales and earnings forecasts tomorrow. Moderna is expected to hold its second quarter earnings conference call at 8:00 a.m. EDT.