Please ensure Javascript is enabled for purposes of website accessibility

Why Moderna Stock Is Rising Today

By Keith Speights – Dec 7, 2021 at 1:12PM

Key Points

  • A study found that a second dose of the Moderna vaccine following a first dose of the Pfizer-BioNTech or AstraZeneca vaccines appears to be more effective than two doses of these vaccines.
  • These results could work to Moderna's advantage especially in countries that are early in their vaccination efforts.

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

Investors liked the encouraging results from a study conducted by the University of Oxford.

What happened

Shares of Moderna (MRNA -0.91%) were rising 3.1% as of 12:51 p.m. ET. The gain came after results were announced for a COVID-19 vaccine study led by the University of Oxford.

This study found that a second dose of Moderna's vaccine following a first dose of either the Pfizer-BioNTech vaccine or the AstraZeneca vaccine was more effective than two doses of the two other vaccines.

A healthcare professional giving a shot to a person.

Image source: Getty Images.

So what

The University of Oxford study results aren't likely to benefit Moderna all that much in countries that have already vaccinated much of their populations. The U.S. has fully vaccinated around 60% of its population. Close to 66% of people in the European Union have been fully vaccinated.

However, the data could work more to Moderna's advantage in countries that are earlier in their vaccination efforts. It's possible that some of these countries could encourage individuals to use Moderna's Spikevax vaccine as their second dose after receiving a first dose of the AstraZeneca vaccine or the Pfizer-BioNTech vaccine.

There's also a chance that the latest news could sway some in the U.S. and other countries that allow mix-and-match boosters to select Moderna's vaccine. The University of Oxford study didn't evaluate third booster doses, but its results could bolster the perception that Moderna's vaccine offers higher efficacy.

Now what

While Moderna's shares rose modestly today, the most important catalysts for the vaccine stock are potential supply agreements that extend into 2023 and beyond. The main question for Moderna right now is how strong the demand for its COVID-19 vaccine will be over the long term.

Keith Speights owns shares of Pfizer. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.