UPDATE: Moderna stock pops after agreement to sell at least 100 million COVID-19 vaccine doses to U.S. government
Moderna Inc. (MRNA) announced Tuesday afternoon that it has reached an agreement to sell 100 million doses of its investigational vaccine for COVID-19 to the U.S. government for more than $1.5 billion. "Breaking: Moderna announces a supply agreement with the U.S. government to secure an initial 100 million doses of mRNA-1273 for up to $1.525 billion with option granted to U.S. government to purchase up to an additional 400 million doses," the company revealed in a tweet (https://twitter.com/moderna_tx/status/1293302545675427840). Moderna shares jumped more than 8% in after-hours trading immediately following the announcement. Earlier studies of Moderna's vaccine candidate produced antibodies for COVID-19 (http://www.marketwatch.com/story/moderna-stock-surges-17-on-coronavirus-vaccine-trial-news-2020-07-14), the company previously announced, and it is currently operating a Phase 3 study of the vaccine (http://www.marketwatch.com/story/modernas-stock-rallies-as-it-moves-forward-with-enrolling-its-phase-3-covid-19-vaccine-trial-2020-08-05). "The U.S. government has announced that consistent with its commitment to free access to COVID-19 vaccines, Americans will receive mRNA-1273 at no cost for the vaccine itself," Moderna added in a subsequent news release (https://investors.modernatx.com/news-releases/news-release-details/moderna-announces-supply-agreement-us-government-initial-100). "As is customary with government-purchased vaccines, healthcare professionals could charge for the cost of administering the vaccine." Moderna shares have exploded higher amid the frenzy to develop a COVID-19 vaccine during a worldwide pandemic, with the share price jumping more than 250% so far this year as the S&P 500 index has gained 5.2%.
-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 11, 2020 18:02 ET (22:02 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.