Please ensure Javascript is enabled for purposes of website accessibility

Why Moderna Stock Surged Today

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

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

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. 

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
$137.71 (-3.21%) $-4.57
Johnson & Johnson Stock Quote
Johnson & Johnson
JNJ
$175.50 (-1.86%) $-3.32

*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 service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

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.