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.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
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.
Related News:
Facebook Hits 1T Market Cap
2U Inks $800M Deal to Acquire edX; Shares Rise
AMC Theatres Record Blockbuster Weekend on Reopening; Shares Soar 7.5%