Just as the Nasdaq Composite (^IXIC +1.61%) led markets lower in 2022, the index is working hard to lead a rebound early in 2023. After being the only one of the three major U.S. stock market indexes to finish higher on Tuesday, the Nasdaq once again looked good early Wednesday morning, with futures on the index rising nearly half a percent.
One winner leading the Nasdaq higher Wednesday morning was vaccine stock Moderna (MRNA +1.04%), which announced positive news that showed investors the company is more than just a one-trick pony. Meanwhile, though, shares of Bluebird Bio (BLUE +0.00%) moved sharply lower for the second day in a row, as investors reacted negatively to the latest corporate news from the small biotech.
Moderna sees success in fighting RSV
Shares of Moderna rose 7% in premarket trading Wednesday morning. The well-known maker of the Spikevax COVID-19 vaccine released positive trial data on another vaccine candidate that could further broaden Moderna's overall portfolio and offer more proof that its mRNA-based technology can provide solutions across a wide range of different diseases.
Late Tuesday, Moderna announced that its mRNA-1345 investigational vaccine for respiratory syncytial virus (RSV) in older patients met its primary efficacy endpoints in a phase 3 clinical trial. Those endpoints included vaccine efficacy of 83.7% in protecting against RSV causing disease in the lower respiratory tract as defined by two or more symptoms. The trial demonstrated a slightly lower efficacy of 82.4% when looking for three or more symptoms of disease. The mRNA-1345 candidate showed no safety concerns.
NASDAQ: MRNA
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Moderna intends to submit mRNA-1345 for regulatory approval in the first half of 2023 based on the trial results. CEO Stéphane Bancel noted that the data shows that Moderna has now offered two successes in its infectious disease vaccine platform, and the company hopes to develop a broader portfolio of respiratory mRNA-based vaccines to target other viruses causing flu and other respiratory infections.
For shareholders, Moderna stock continues to have a bumpy ride, seeing substantial rises and falls throughout the past year. Even as COVID-19 revenue likely declines, though, Moderna is putting in place some good candidates to replace those lost sales and stay on a growth track.
Bluebird sings a sad song
Moving in the other direction, shares of Bluebird Bio fell another 9% in premarket trading Wednesday morning. That followed an 8% decline in Tuesday's regular trading session, with investors reacting negatively to the latest move from the biotech company to raise cash.
Bluebird said early Wednesday that it would propose a secondary public offering of stock. Under the terms of the offering, Bluebird will look to sell 20 million shares to investors, with another 3 million shares going to underwriters of the offering at their option.
NASDAQ: BLUE
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The biotech intends to use the cash for multiple purposes. It already has two approved gene therapies, Zynteglo and Skysona, for which it needs to support marketing and manufacturing efforts. At the same time, it's also looking to set capital aside for future commercialization of its candidate gene therapy for sickle cell disease, if it eventually gets approval from the U.S. Food and Drug Administration.
From a timing perspective, Bluebird's decision makes sense, as the stock has more than doubled since the middle of 2022. However, investors are rarely pleased at the dilution that can result from additional share offerings, and Bluebird shareholders seemed not to appreciate the reminder that the biotech still needs outside capital even as conditions in the financial markets remain far from ideal.
