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Moderna Stock Rises on FDA Vaccine Recommendation for Kids
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Moderna Stock Rises on FDA Vaccine Recommendation for Kids

Story Highlights

FDA researchers found that two doses of Moderna’s vaccine achieved 93% efficacy for children and teens between the ages of six and 17. The FDA’s Vaccines and Related Biological Products Advisory Committee (VRBPAC) voted unanimously 22-to-0 to grant Emergency Use Authorization of the same.

Shares of the vaccine maker Moderna (MRNA) jumped over 1% during the extended trading session on June 14 after a group of advisers to the U.S. Food and Drug Administration (FDA) recommended the authorization of Moderna’s COVID-19 vaccine for children between the ages of six and 17 years.

With a 22-0 vote, the FDA’s Vaccines and Related Biological Products Advisory Committee (VRBPAC) unanimously voted for the approval of Modern’s COVID-19 vaccine for children and adolescents between the ages of six and 17 years old.

Furthermore, the panellists stated that the benefits of vaccinating children in the aforementioned age group outweigh the risks. FDA researchers found that two doses of Moderna’s vaccine achieved 93% efficacy in both age groups.

Though the FDA is not under any obligation to follow the recommendations of its advisory committees, it usually does so.

If the FDA approves the recommendation, Moderna’s vaccine will become the second to Pfizer (PFE)-BioNTech’s (BNTX) COVID vaccine, which received authorization for the same age group in October 2021.

Last year, the FDA delayed its decision to approve Moderna’s vaccine for adolescents aged 12 through 17 as it wanted to address concerns pertaining to the risk of heart-inflammation conditions, including myocarditis and pericarditis, and conduct a further review.

Though some European nations have allowed limited use of Moderna’s vaccine for younger age groups due to concerns over its safety, more than 40 other countries have authorized its use.

Wall Street’s Take

Following the news, Brookline Capital Markets analyst Leah R. Cann maintained a Buy rating on Moderna with a price target of $506 (316.26% upside potential).

The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on six Buys, five Holds and one Sell. The average Moderna price target of $222.50 implies 83.04% upside potential to current levels.

Increased Hedge Fund Trading

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in MRNA is currently Very Positive, as some of the top hedge funds that were active in the last quarter increased their cumulative holdings by 2.9 million shares.

Conclusion

The committee of experts is expected to meet today to evaluate the Moderna as well as Pfizer and BioNTech’s COVID vaccine for children aged 6 months to 5 years.

Though the approval for younger age groups is a positive, it may not create a huge demand as the Pfizer/BioNTech vaccine was authorized for children between the ages of five and 11 in October last year.

According to data from the U.S. Centers for Disease Control and Prevention (CDC), 30% of those between the ages of five and 11 and 60% of those between the ages of 12 and 17 are already fully vaccinated in the United States.

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