Moderna’s Vaccine Protective Against New Delta Variants; India Authorizes Emergency Use

Vaccine maker Moderna, Inc. (MRNA) announced that in vitro studies showed Moderna’s COVID-19 vaccines are effective against emerging variants, including the Beta variant, first identified in South Africa, and the Delta variant, first identified in India.

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Moderna is known for its messenger RNA (mRNA) therapeutics and vaccines. Reacting to the new clinical update, the company’s shares jumped 5.2% to close at $234.46 on June 29. (See Moderna stock chart on TipRanks)

Stéphane Bancel, CEO of Moderna, said, “These new data are encouraging and reinforce our belief that the Moderna COVID-19 Vaccine should remain protective against newly detected variants.” He added, “These findings highlight the importance of continuing to vaccinate populations with an effective primary series vaccine (mRNA-1273).”

The study was conducted using serum samples from eight participants, which were obtained one week after the participants received the second dose of the vaccine, mRNA-1273.

The results showed that the vaccine produced neutralizing antibodies against all the variants tested, with a 7.3 or 8.4-fold reduction in neutralizing antibodies titers observed in all the Beta variants compared to the original strain. A modest reduction in neutralizing antibodies titers was observed against the Delta (2.1-fold) compared to the original strain.

The company also received emergency authorization from the Government of India, which granted permission to the drugmaker Cipla, Ltd. to import Moderna’s COVID-19 Vaccine into the country.

Following these two positive news reports, Goldman Sachs analyst Salveen Richter maintained the Buy rating on the stock, with a price target of $228, implying a 2.8% downside potential to current levels.

Richter continues to see a clinical need for a booster vaccine, as she views the Delta variant 2.1-fold reduction in neutralizing antibodies as “a modest reduction versus other variants.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 7 Buys, 4 Holds, and 2 Sells. The average analyst Moderna price target of $192.82 implies a 17.8% downside potential from current levels. Shares have gained almost 265% over the past year.