What happened
Shares of Moderna (MRNA -1.61%) had soared 21.8% this week as of the market close on Thursday, according to data from S&P Global Market Intelligence. The company reported several positive developments in recent days.
On Monday, Moderna announced the dosing of the first participant in a phase 1 study evaluating experimental HIV vaccine mRNA-1574. On Wednesday, the company stated that it had reached an agreement with the Japanese government to supply another 70 million doses of its COVID-19 vaccine. And on Thursday, Moderna won authorization in Canada for its COVID vaccine in immunizing children ages 6 to 11.
But probably the biggest factor behind the vaccine stock jumping so much is that another COVID wave is underway outside of the U.S. China is experiencing its worst coronavirus outbreak since 2020. Cases are also rising significantly in the European Union and the United Kingdom.
So what
Before this week, Moderna's shares had plunged more than 70% from the peak set in August 2021. The company's business wasn't struggling, with both sales and profits skyrocketing. But investors appeared to have been pricing in expectations that the pandemic would end after the coronavirus omicron variant ran its course in the U.S.
Now, though, those hopes are waning quickly in light of the outbreaks across the world. Moderna could be poised to land additional supply deals.
Image source: Getty Images.
Now what
The U.S. hasn't ordered any COVID vaccine doses from Moderna for use beyond 2022. Arguably the most important potential catalyst on the horizon for the company is the possibility of finalizing a supply deal with Uncle Sam to add to the 500 million doses that are part of existing agreements.
