what happened
Modern (NASDAQ: MRNA) gave its investors an up-and-down exit on Friday, with stock trading up 1.5% higher and 8.5% lower than the previous day. Eventually, it virtually landed flat on the day. Several news outlets were responsible for the push-pull dynamics.
Approximately
Moderna has announced that its partner in Japan, Takeda Pharmaceutical, has filed a new drug application (NDA) for its now known mRNA-1273 coronavirus vaccine (known as TAK-919 in that country).
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In another possible positive development, it appears that a study conducted at the La Jolla Institute of Immunology in California indicates that the T cells produced by mRNA-1273 are effective against the four currently most relevant variants of the coronavirus. The prisoner is that the research is based on a set of laboratory tests and therefore provides no definitive evidence. The research has also not yet been judged by peers. In addition Pfizer and BioNTechBNT162b2 was found to have similar properties.
On a more discouraging note for Moderna, Reuters reported Friday that fresh research suggests that AZD1222, the rival coronavirus vaccine candidate from AstraZeneca and the University of Oxford, are effective against the P1, or ‘Brazil’ variant.
Now what
As none of these developments were decisive or important, shareholders on Friday appeared to be uncertain about how to trade with Moderna. However, I think the news was generally good for biotechnology, especially the Japan New Drug Application (even if it was more or less expected). Modern stock still looks like a good investment.
This article represents the opinion of the author, who may not be in agreement with the ‘official’ recommendation position of a Motley Fool premium advisory service. We are furry! Questioning an investment thesis – even one of our own – helps us all to think critically about investments and to make decisions that help us become smarter, happier and richer.