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.
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%
