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Why Moderna Stock Surged Today

By Joe Tenebruso - Jan 29, 2021 at 5:33PM

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With a competitor stumbling, the biotech could see increased demand for its COVID-19 vaccine.

What happened

Shares of Moderna (MRNA -3.21%) climbed 8.5% on Friday following Johnson & Johnson's (JNJ -1.86%) disappointing coronavirus vaccine news.

So what

Johnson & Johnson said that interim data from the phase 3 trial of its single-dose vaccine candidate had shown it to be 66% effective at preventing moderate to severe cases of COVID-19. However, the level of protection was lower in areas where new strains of the coronavirus are more prevalent, suggesting that it could be less effective at protecting against them.

A person is pointing to an upwardly sloping line that's above a downwardly sloping line.

Moderna's stock price rose sharply on Friday. Image source: Getty Images.

This news could give Moderna a decided edge over Johnson & Johnson in terms of winning vaccine supply orders from governments. Clinical trials showed Moderna's vaccine to be 94% effective against COVID-19. Further studies are currently underway to determine its level of effectiveness against new virus strains. 

The U.S. government has already signed a deal to purchase 200 million doses of Moderna's coronavirus vaccine. On Wednesday, the company said it was in talks with Washington regarding a deal for it to purchase 100 million more doses. 

Now what

Moderna has emerged as a leader in the battle against COVID-19, thanks to the promising results of its clinical trials. The biotech is ramping up its vaccine production capabilities, and it remains on track to deliver as many as 1 billion doses worldwide in 2021. 

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Stocks Mentioned

Moderna, Inc. Stock Quote
Moderna, Inc.
$137.71 (-3.21%) $-4.57
Johnson & Johnson Stock Quote
Johnson & Johnson
$175.50 (-1.86%) $-3.32

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