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What happened
Actions of Modern (NASDAQ: mRNA) rose 4.9% to a record high of $ 246.66 on Wednesday, as health officials warned of the potential of another wave of COVID-19 infections later this year.
So what
New strains of coronavirus, such as the Delta variant, are spreading rapidly in the United States and other parts of the world. They are leading to a rebound in the number of COVID-19 cases across many areas, fueling calls for governments to step up their vaccination efforts.
Image source: Getty Images.
Fortunately, Moderna’s vaccine helps protect against several coronavirus mutations, including the Delta variant, although at lower levels than the original strain. To strengthen their ability to defend against emerging variants, Moderna and rival drugmaker Pfizer are working on booster shots that could help increase people’s abilities to fight off the virus.
Now what
If COVID-19 booster vaccines are needed on a regular basis, say annually or even semi-annually, they could become a significant source of recurring revenue for Moderna. In addition, revenues related to the biotechnology coronavirus will help fuel its highly regarded research and development program.
Moderna has a well-stocked pipeline of vaccines and experiential treatments for a range of diseases, and CEO Stéphane Bancel believes he could have up to 60 drugs in clinical trials within a few years. If only a few of these drug programs are successful, investors could look forward to even greater gains in the years to come.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.
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