Moderna (NASDAQ:MRNA) alongside the US National Institutes of Health have made a historic breakthrough in the race for a viable COVID-19 vaccine. MRNA’s results showed all 45 patients from the Phase 1 trial saw an induced anti-body production. This anti-body production simply put helps bolster the individuals immune response to the virus. The markets are expected to react strongly to this news alongside huge spikes in Airline and Cruiseship stocks. The Dow Jones futures this morning suggest a 535+ point open while the S&P 500 is expected to open 1.4% higher (8:30 AM EST).
“We are committed to advancing the clinical development of mRNA-1273 as quickly and safely as possible while investing to scale up manufacturing so that we can help address this global health emergency.”
Stéphane Bancel, Chief Executive Officer of Moderna. View full results here
Table of Contents 1. Introduction 2. What the announcement means for Moderna Investors? 3. What does the imminent future look like for MRNA investors?
What this means for Moderna Investors?
It wasn’t too long ago when YIG first covered Moderna’s initial ambitions to produce the first COVID-19 vaccine. At that time, it was almost anyone’s guess at who would be the leader of the COVID-19 vaccine race. Throw the clock back to March and Moderna was worth 4 times less, trading at a flat equilibrium of $18. The immense investor backing over the past few months has allowed MRNA to soar to extreme new heights. MRNA is likely to open above $90, putting it close to the elite handful of Bio-Pharma’s priced above $100.
If you bought Moderna on it’s vaccine speculation in March – you would have made a 500% return in just over a quarter of trading. This is a clear example of the pure speculation investors have been riding since the outbreak of COVID-19. Although I still have trouble understanding these returns from a fundamental perspective, investors that have moved on this wave have made the greatest rewards.
More than anything, YIG believes this announcement allows MRNA investors to take a breather for the next few weeks. With heightened speculation surrounding the vaccine race, any negative trial data are likely to set off a chain of brutal sell-offs. This is where that risk-reward factor comes into play.
What does the imminent future look like for Moderna investors?
Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
Short answer: The imminent future looks bright for MRNA investors – however the race is far from over.
Although the next few days will remain MRNA’s time to shine, I must remind our readers that this race is far from over. There is no doubt, MRNA have proven they will be one of the leading pioneers for the COVID-19 vaccine. However, scientists have still been unable to identify whether this vaccine can actually prevent COVID-19 and the severe complications involved. The next human phase trial is to commence in late July and MRNA are optimistic in providing 3 million doses of the vaccine by early 2021. These are exciting times to be holding MRNA stock.
Between this period of time and 2021, a lot of things can change. The adverse effects experienced by 22% of patients in the Phase-1 Human-Trial could pose further questions later down the track. Having said this given the current circumstances, it is safe to say Moderna are remaining the ones to watch.
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The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
Written by Tyger Fitzpatrick, Founder of YIG.