Please ensure Javascript is enabled for purposes of website accessibility

Moderna in Talks to Sell 40 Million Coronavirus Vaccine Doses to Japan

By Brian Orelli, PhD – Aug 28, 2020 at 3:28PM

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

Investors will want to keep an eye on what price the biotech can fetch for its vaccine.

Moderna (MRNA 2.12%) is in talks with Japan's Ministry of Health, Labour and Welfare to sell 40 million doses of its coronavirus vaccine mRNA-1273. If the sides can come to terms -- and the vaccine is ultimately approved in the country -- Japan-based Takeda Pharmaceutical (TAK -0.08%) will distribute the vaccine starting in the first half of 2021.

Earlier this week, Moderna disclosed that it was in "advanced discussions" with the European Commission to supply 80 million doses of mRNA-1273. And a few weeks ago, the company announced a deal with the U.S. government to supply 100 million doses of the vaccine. The U.S. deal comes with an option for the government to purchase up to an additional 400 million doses.

Syringe being prepared to give an injection into someone's shoulder.

Image source: Getty Images.

Investors will want to pay close attention to the price per dose when the terms of the contracts with the Japanese and EU governments are disclosed. The U.S. government is only paying $15.25 per dose for its initial 100 million doses of mRNA-1273, which is substantially cheaper than the $19.50-per-dose deal Pfizer (PFE 0.59%) and BioNTech (BNTX 2.08%) got for their coronavirus vaccine, BNT162.

Of course, Moderna has also received $955 million in financial support from the U.S. government for the development of mRNA-1273, so it seems reasonable for the U.S. government to receive a discount compared to the price of vaccines from other drugmakers.

Moderna is working on scaling up its manufacturing capabilities with the goal of delivering 500 million doses per year with the possibly of increasing output to 1 billion doses per year, beginning in 2021.

Brian Orelli, PhD and The Motley Fool have 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.
$122.23 (2.12%) $2.54
Pfizer Inc. Stock Quote
Pfizer Inc.
$44.09 (0.59%) $0.26
Takeda Pharmaceutical Company Limited Stock Quote
Takeda Pharmaceutical Company Limited
$12.80 (-0.08%) $0.01
BioNTech SE Stock Quote
BioNTech SE
$130.30 (2.08%) $2.65

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

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.