What happened
Shares of Moderna (MRNA 0.89%) climbed on Monday after the biotechnology leader said it could have a COVID-19 booster vaccine that specifically targets the omicron variant ready by the fall. The company also provided investors with an update on its vaccine sales and drug development pipeline.
As of 3:20 p.m. ET, Moderna's stock price was up more than 8%.
So what
CEO Stéphane Bancel said during an interview on CNBC that Moderna will soon begin clinical trials for its omicron-specific booster shot. The drug could serve as the first of a series of annual boosters designed to specifically target the most prevalent coronavirus strains, as new mutations emerge.
"We need to be careful to try to stay ahead of a virus and not behind the virus," Bancel said.
Moderna is developing new vaccines to combat the rapidly spreading omicron strain. Image source: Getty Images.
Variant-specific boosters could help Moderna sustain its booming vaccine sales. The biotech delivered over 800 million doses of its COVID-19 vaccine last year, generating roughly $17.5 billion in sales.
Incredibly, it's looking like 2022 will be even more profitable for the pharmaceutical giant. Already this year, Moderna has signed advanced purchase agreements totaling $18.5 billion, with options for an additional $3.5 billion in sales.
Now what
Moderna is using the cash flow it's generating from its vaccine sales to fund its impressive research program. Its drug pipeline has swelled to 40 programs currently in development, with 23 already in clinical studies.
At the forefront of these efforts is the company's plans to create an annual booster vaccine that will help to protect people from COVID-19, the flu, and potentially other viruses. Moderna believes demand for a combination vaccine will be higher than for separate shots.
