What happened
Shares of Moderna (MRNA -2.88%) were up by 5.4% as of 11:45 a.m. ET on Monday. The gain appears to be the result of several factors.
Some investors could be feeling more bullish about the vaccine maker after the Food and Drug Administration authorized its COVID-19 booster for all adults on Friday. Others could be more focused on the German government's decision to promote Moderna's booster shot to its citizens. In addition, Singapore's health minister stated publicly that people who initially received two doses of the Pfizer-BioNTech COVID-19 vaccine should consider getting the Moderna shot as their booster.
Image source: Getty Images.
So what
Over the short term, the biotech might not actually benefit financially from these latest developments. That's certainly true when it comes to the domestic market. The federal government has already agreed to buy 500 million doses of Moderna's vaccine. Washington probably won't need to acquire additional doses to meet near-term demand, even with boosters available to all adults.
However, it's possible that Moderna could be helped over the long term. Countries that promote its boosters could be more likely to place advanced purchase vaccine agreements with it for 2023 and beyond.
Perhaps more than anything, investors are simply relieved that Moderna has good news to share. Over the last several weeks, the company has had plenty of bad news. Moderna lowered its full-year 2021 revenue outlook. Also, the Food and Drug Administration extended its review of the company's vaccine for use in adolescents. That prompted Moderna to delay submitting its request for Emergency Use Authorization for its vaccine to be administered to younger children.
Now what
The most important thing to watch with Moderna will be how successful it is at securing additional supply deals. The company has already signed agreements worth around $17 billion for delivery in 2022.
