Why Moderna Stock Gained 15.5% in March While the Market down.
The coronavirus vaccine developer is moving with good pace.
What happened
Shares of clinical-stage biotech Moderna (NASDAQ:MRNA) rose 15.5% in March, according to data from S&P Global Markets.
That's a way better growth than it might seem at first sight, when you consider that previous month the S&P 500 index returned negative 12.4%. The market sell-off is being taken by investors' fears about the economic impact of the novel coronavirus pandemic.
In April, Moderna Inc stock has continued to scale up. In the first two trading days of the month through Thursday, it's risen up 10.9%, whereas the broader market is down by 3.8%.
THERE'S NO COVID-19 VACCINE YET, BUT MANY COMPANIES ARE WORKING ON DEVELOPING ONE.
So what
We can give credit to Moderna stock's robust performance last month to investor interest about the company's prospects for developing a vaccine to immunize people against COVID-19, the disease caused by the novel coronavirus.
On March 16, Moderna stock jumped up 24.4% following the company's announcement of the start of the phase 1 clinical trial for its messenger RNA (mRNA) vaccine candidate, which is being conducted by its partner, the National Institutes of Health.
The chart below shows how Moderna stock has performed in 2020 through April 2 - the company's initial public offering (IPO) in December 2018 -- shares are up 44.3%. They debuted on the market at $23 per share.
Now what
Moderna plans to begin phase 2 trials in the spring or early summer. If all goes well, it expects to have a vaccine ready for public distribution in 12 to 18 months. That's super fast in the world of vaccine development. The good news is that "it is possible that under emergency use, the vaccine could be available to certain people, possibly including people in healthcare sector, in the end of 2020". For better understanding of the latest news, visit their website: https://investors.modernatx.com/news-releases
The company's mRNA platform gives promising look, and the demand for a COVID-19 vaccine will be huge.
Recommendation: Moderna stock is moving up despite the index S&P 500 and all indices are showing sell-off. Go long in this stock till signs of further correction.
Do you wanna to see other stock recommendations and their reviews & performance, please view previous posts of Samsung Electronics Co Ltd DRC Pref – a Long-trade (Buy) opportunity and Intuitive Surgical Inc – a Long-trade (Buy) opportunity.
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