The hunt for a Coronavirus vaccine is on. Social distancing measures and lockdowns can only stop the spread of the virus. But to truly eradicate the disease, a vaccine is necessary. Many biotech and pharmaceutical companies in the world are thus trying to find the vaccine for this disease.
Earlier this week, on Monday, 18 May 2020, American biotech company, Moderna gave some optimism to the world. The company reported a successful pre-trial for their vaccine. The US stock market reacted immediately to this news, and stocks rose throughout the day. Moderna, naturally, benefitted the most. After the news came out, Moderna’s stock rose by 13.31 USD in pre-market trading on Monday.
Modern Stock Rises Again
The stock has cooled off since that large rise on Monday. The stock closed at a price 67.05 USD on Thursday, 21 May 2020 after its high of 80 USD on Monday. But, on Friday, 22 May 2020 the stock is once again rising. The stock rose in premarket trading and opened the day at a price of 69.95 USD. Since then, the stock is falling again but on the day, it is still up overall. As of 11:08 GMT, the stock is at a price of 68.17 USD, a rise of 1.12 USD or 1.67% from the previous closing price.
Why Did The Stock Rise?
Dr Anthony Fauci is a top health-care advisor to the White House. On Friday, Dr Fauci stated that he is “cautiously optimistic” about the vaccine that Modern is developing. In an interview with NPR, Fauci said that he was pleased to see the results from the first few tests by the company. These comments from a high-level government official led to the stock rallying and rising by 4.5% in premarket trading.
What Next For Moderna?
Moderna’s stock is up by 45% in the month of May. But, their vaccine test results are largely responsible for this rise. However, investors should remain wary of the stock. There are already signs that the optimism from the test results are wearing off. It will take more than a year of testing for Moderna to validate its vaccine. A failed test could see the stock plummet. But further positive results could lead to the stock skyrocketing. Hence, it is difficult to predict where the stock will go next.