Please ensure Javascript is enabled for purposes of website accessibility

Why Moderna Stock Surged Today

By Joe Tenebruso - Updated Mar 11, 2021 at 7:30PM

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 searching for ways to offer a greater defense against new coronavirus mutations.

What happened

Shares of Moderna (MRNA 3.78%) jumped 8.3% on Thursday after the biotech said it has dosed the first participants in a study evaluating its new coronavirus booster-vaccine candidates. 

So what 

Moderna's COVID-19 vaccine is believed to offer some protection against all of the most common coronavirus variants, including the strains first identified in the U.K. and South Africa. Yet the biotech is testing whether a booster dose could provide even more protection, particularly to people who are more vulnerable to severe forms of the disease.

A person in safety gear is holding a vial labeled coronavirus 2019.

Moderna's stock price rose sharply on Thursday on optimism for its booster vaccines. Image source: Getty Images.

To do so, it will provide a single booster dose to 60 participants in its ongoing phase 2 study who have already been vaccinated with its COVID-19 vaccine, mRNA-1273. Some participants will receive a variant-specific booster candidate targeted at the South African strain, while others will receive a dose that combines the booster with Moderna's previously authorized vaccine.

Now what

Should the booster vaccines prove safe and provide an additional layer of protection against coronavirus variants, they could become an important weapon in the global battle against COVID-19. In the process, they would also give Moderna a significant new source of recurring revenue, particularly if the booster shots are needed on an annual basis or every six months.

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
$135.80 (3.78%) $4.95

*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
332%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

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.