Why the Moderna share rebounded today

What happened

Modern (NASDAQ: ARNM) rebounded on Wednesday from a decline earlier in the week, with shares rising 5.9% as of 2:53 p.m. EST. The gain came after the biotech announced two positive developments on Wednesday morning. Singapore has approved provisional authorization for the COVID-19 vaccine mRNA-1273. In addition, the Swiss government has increased its order for Moderna vaccine from 7.5 million to 13.5 million doses.

So what

Moderna’s two announcements now translate into higher revenues for the company. It has already entered into a supply agreement with Singapore for an unspecified number of doses of mRNA-1273. And while no financial details of Moderna’s supply deal with Switzerland have been released, it is likely that the additional 6 million doses announced today will add well over $ 100 million to the figure. biotechnology business this year.

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But does the biotech stock have much greater upside potential in the short term? Moderna’s market capitalization already exceeds $ 65 billion. Assuming the company earns around $ 15 billion in 2021 from mRNA-1273, its current valuation already takes revenue growth into account.

Moderna has other pipeline candidates, including mRNA-1647 from the investigational cytomegalovirus (CMV) vaccine. The company plans to advance the vaccine to advanced stage testing this year. It is possible that mRNA-1647 or other promising candidates may provide additional catalysts in 2021.

Now what

A key thing to watch out for with Moderna going forward is the possibility of adding an additional 100 million doses of mRNA-1273 to its supply agreement with the U.S. The company confirmed last week that it was in talks with the Biden administration, although no deal has yet been finalized.