Please ensure Javascript is enabled for purposes of website accessibility

Why Moderna Stock Rose Today

By Joe Tenebruso – May 28, 2020 at 7:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The biotech is ramping up its coronavirus vaccine production capabilities.

What happened 

Shares of Moderna (MRNA 0.15%) climbed 6.4% on Thursday after the biotechnology company said that it extended a manufacturing agreement with a key supplier for its experimental coronavirus vaccine. 

So what

Global pharmaceutical manufacturing platform CordenPharma will supply Moderna with "large-scale volumes" of lipids for its COVID-19 vaccine candidate, mRNA-1273.

"The expanded agreement will begin immediately in order to rapidly meet Moderna's increasing demand over the upcoming months, with an emphasis on securing their future long-term supply," CordenPharma said in a press release.

People working with medical equipment in a lab.

Moderna stock rose on Thursday after it struck a deal to ramp up its COVID-19 vaccine production capabilities. Image source: Getty Images.

The deal will see CordenPharma use its network of manufacturing facilities in the U.S. and Europe to produce the materials Moderna needs for its vaccine.

"We are hopeful Moderna's technology represents a positive impact for people suffering from COVID-19 across the globe, and we are honored to contribute to the industry as a whole," CordenPharma CEO Dr. Michael Quirmbach said.

Now what

After its phase 1 clinical study demonstrated promising early results for its experimental mRNA-1273 drug, Moderna is now expected to begin a phase 2 trial. A government registry of clinical trials shows that Moderna has already begun recruiting participants for the study.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Moderna, Inc. Stock Quote
Moderna, Inc.
MRNA
$118.25 (0.15%) $0.18

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.