what happened
Modern (NASDAQ: MRNA) jumped back from a decline earlier in the week on Wednesday, up 5.9% from 14:53 EST. The gain came after biotechnology announced two positive developments on Wednesday morning. In Singapore, interim authorization for the COVID-19 vaccine mRNA-1273 has been approved. The Swiss government has also increased the order for Moderna’s vaccine from 7.5 million to 13.5 million doses.
Approximately
Both of the Moderna announcements today lead to higher revenue for the company. There is already a supply agreement with Singapore for an unspecified number of doses of mRNA-1273. And while no financial details of Moderna’s supply deal with Switzerland have been released, it is likely that the additional 6 million doses announced today will add more than $ 100 million to the biotechnology topline this year.
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But does the biotechnology stock have much more upside potential in the short term? Moderna’s market capitalization is already $ 65 billion. Assuming the company earns $ 15 billion from mRNA-1273 by 2021, the current valuation is already increasing revenue growth.
Modern has other candidates for the pipeline, including experimental cytomegalovirus (CMV) vaccine mRNA-1647. The company plans to have the vaccine tested this year. It is possible that mRNA-1647 or other promising candidates could produce additional catalysts in 2021.
Now what
One important thing to look forward to with Moderna is the possibility of adding another 100 million doses of mRNA-1273 to its supply agreement with the US. The company confirmed last week that it is in talks with the Biden government, although no agreement has been reached yet.