Moderna stock surged to a record high and into a profit-taking zone on Tuesday after its Covid vaccine protected against a handful of variants in an early-phase study.
The biotech company also gained emergency authorization for its coronavirus vaccine in India where the Delta variant has run rampant. There are now more than 30.3 million cases of Covid-19 in India. That includes nearly 11,000 new cases as of Tuesday morning.
“I want to thank the government of India for this authorization, which marks an important step forward in the global fight against the pandemic,” Moderna (MRNA) Chief Executive Stephane Bancel said in a written statement. “We are committed to making our Covid-19 vaccine available around the world.”
On the stock market today, Moderna stock popped 5.2% to 234.46.
Moderna Stock Hits A New Record
Moderna’s Covid vaccine follows AstraZeneca‘s (AZN) University of Oxford-partnered vaccine in India. The country also administers Covaxin, from India’s Bharat Biotech, and Russia’s Sputnik V. Dr. Reddy’s Laboratories (RDY) is partnering to launch Sputnik V in India.
Still, Our World in Data estimates just 4.1% of India’s population is vaccinated. The more infectious Delta variant is plaguing India. The lion’s share of vaccines, including the vaccine from Pfizer (PFE) and BioNTech (BNTX), were developed before the Delta variant was first identified.
In a first-phase study, Moderna pitted serum samples from eight people a week after they received the second dose against several variants. The results prodded Moderna stock to a record high.
The vaccine produced neutralizing antibodies against all variants tested. That included two versions of the Beta variant, three versions of the variant first identified in India — including Delta and Kappa — the Eta variant and variants found in Uganda and Angola.
“As we seek to defeat the pandemic, it is imperative that we are proactive as the virus evolves,” CEO Bancel said. “We remain committed to studying emerging variants, generating data and sharing it as it becomes available. These new data are encouraging and reinforce our belief that the Moderna Covid-19 vaccine should remain protective against newly detected variants.”
Highly Rated Biotech Stock
Moderna stock hit a record high, surging into a profit-taking zone on Tuesday. CAN SLIM investing rules suggest investors take some profits when a stock rises 20%-25% above its entry. Shares broke out of a cup-with-handle with a buy point of 189.10 on June 2. The stock is nearly 24% extended, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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