What happened
Modern (NASDAQ: MRNA) provided a tour of ups and downs for its investors on Friday, with the shares being traded 1.5% above and 8.5% below the previous day’s close. In the end, it fell essentially on the same day. Several news were responsible for the push-pull dynamics.
And
Moderna announced that its partner in Japan, Takeda Pharmaceutical, submitted a New Drug Order (NDA) for its now famous mRNA-1273 vaccine against coronavirus (known as TAK-919 in that country).
Image source: Getty Images.
In another potentially positive development, a study conducted at the La Jolla Institute for Immunology in California appears to indicate that the T cells produced by mRNA-1273 are effective against the four currently most worrying variants of the coronavirus. The problem is that the research is based on a set of laboratory tests and, therefore, does not offer definitive proof. In addition, the research has not yet been peer-reviewed. Furthermore, Pfizer and BioNTechBNT162b2’s was found to have similar properties.
On a more discouraging note to Moderna, Reuters reported on Friday that new research indicates that AZD1222, the rival vaccine candidate for the coronavirus of AstraZeneca and the University of Oxford, it is effective against the P1 variant, or “Brazil”.
What now
Since none of these developments were decisive or important, shareholders seemed unsure about how to negotiate with Moderna on Friday. However, I think the news was generally good for biotechnology, particularly for the Japan New Drug Application (even if it was more or less expected). Moderna’s shares still look like a good investment.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even our own – helps all of us to think critically about investing and making decisions that help us become smarter, happier and wealthier.