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Why Moderna Stock Surged Today

By Joe Tenebruso – Sep 9, 2021 at 5:43PM

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Investors are intrigued by the biotech's promising drug pipeline.

What happened 

Shares of Moderna (MRNA -0.23%) jumped 7.8% on Thursday after the drugmaker announced several notable advances during its annual research and development update. 

So what

Moderna is developing a single-dose vaccine, known as mRNA-1073, that includes boosters against both COVID-19 and seasonal flu. The biotech is also evaluating four development candidates against coronavirus variants, including Delta, with three already in clinical trials.

Medical researchers are working in a lab.

Moderna's stock price rose sharply following its R&D update on Thursday. Image source: Getty Images.

Additionally, Moderna said a third dose of its mRNA-1273 vaccine induced "robust antibody responses" for all variants of concern in a phase 2 study. Moderna is seeking Emergency Use Authorization (EUA) with the U.S. Food and Drug Administration (FDA) for COVID-19 booster shots, which health officials say could further help to slow the spread of the disease.

Now what

Thanks to strong global demand for its COVID-19 vaccine, Moderna's cash reserves have grown to a staggering $15 billion. Management is wisely investing these profits into the company's highly regarded R&D program. That's helped Moderna build a robust drug pipeline, with 37 programs in development, including 22 in clinical trials.

"We believe our mRNA platform can solve the world's greatest health challenges, from diseases impacting millions, to ultra-rare diseases impacting dozens, to medicines personalized down to the individual level," CEO Stéphane Bancel said in a press release.

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

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Moderna Inc. Stock Quote
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