Moderna (NASDAQ: MRNA), a US biotechnology company, launched an experimental coronavirus vaccine for US government researchers only six weeks after starting work on immunization. The stock is currently up 22%.
Initial vaccine vaccination tests could start in April, but the test process and approvals will last at least one year.
Moderna (MRNA) said in Monday’s statement that the first batch of its new coronavirus vaccine, called mRNA-1273, was sent to the National Institute for Allergy and Infectious Diseases (NIAID).
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MRNA said that the first trials of the experimental vaccine would be used in the Phase 1 study in the US. NIAID Director Anthony Fauci said that a clinical trial could begin by the end of April, the “first step” to provide a vaccine for use.
The Wall Street Journal, which first reported the development, said that two doses of the vaccine would be tested on volunteers to see if it produced an immune response that protects the virus. Fauci told CNN that 45 people would take part in the trial.
Even if the clinical trial is successful, further testing and regulatory approvals would be required before the vaccine could be widely used.
Health officials and pharmaceutical companies around the world are working quickly to identify treatment or vaccine to help tackle coronavirus, infected with more than 80,000 people worldwide.
Fauci previously told CNN that researchers could expedite the approval process for a vaccine after a successful Phase 1 trial in an attempt to stop the spread of the virus.
But even when you proceed at an “emergency speed,” a vaccine would not be available for use for at least a year or 18 months, he said on Tuesday.
Moderna is not the only drug company that is expected to receive immunization for the virus.
Johnson and Johnson Pharma (JNJ) and GlaxoSmithKline (GLAXF) giants are working on vaccines, as well as government scientists, including some at NIAID.
Gilead (GILD) shares achieved almost 5% on Monday after the World Health Organization reported that their drugs, remdesivir, are associated with treating coronavirus.
According to Moderna, the vaccine was developed within 42 days of the company receiving genetic information on the sheep cell.
By contrast, it gave researchers about 20 months to start human tests on the SARS vaccine, an older coronavirus, according to a journal written by Fauci.
Moderna has not yet produced a vaccine with its mRNA technology platform, which aims to make drugs that focus on cells in the body to make proteins to prevent or combat disease. It uses a messenger ribonucleic acid, a molecule that is essential for the proper functioning of body cells.
Technology from Phase 1 tests has positive results for six different vaccines, one of which is currently in Phase 2, according to a company spokesperson.
The mRNA approach can produce vaccines faster and less money than traditional methods, according to the UK Health Policy PHG think-tank.
Should I buy MRNA Stock?
Like many investors, you are most likely wondering if you should buy MRNA stock. The answer is yes, if you have an extreme high risk tolerance. Unfortunately Moderna is one of those investments that can drop like a rock.
There is a tremendous upside to MRNA, but most investors would consider this to be too risky. Normally we would recommend looking for a dip in MRNA stock to enter a trade, but a dip could be a serious drop. Bottom line, buy at your own risk.
Stock Markets Today –
Investors are still focused on spreading coronavirus. Yesterday, US President Donald Trump spoke, who tried to calm the market, but unsuccessfully. He said the risk of spreading the disease in the US “remains very low,” but the country is ready for a major outbreak.
However, he later noted that American schools should prepare plans in case the situation worsens. Despite the difficult situation, the most important indicators of the economy are still positive. January sales of new houses in the United States increased from 708K to 764K.
Today, the market is waiting for the publication of data on GDP and orders for durable goods.
If the growth of the US economy in Q4 2019 can be 2.1%, then the volume of orders for durable goods is likely to decrease by 1.5%, which may put pressure on the dollar. The US currency is strengthening against the pound but is weakening against the euro and the yen.
The euro strengthens its position despite negative data on the spread of coronavirus in European countries. New infections have occurred in Denmark and Estonia.
The German Minister of Health, Jens Spahn, announced the start of an epidemic in Germany, as the source of infection for some of the new patients could not be established.
Generally, the situation with coronavirus in the EU continues to deteriorate and may further weaken the European economy, which does not look the best anyway.
The pound came under pressure due to negative data on trade negotiations between the EU and the UK. They should begin next week, but representatives of the British authorities have already announced that they can interrupt the consultation if it is not possible to agree on a broad plan of the deal before June.
Moreover, the British government has identified several important terms of the trade deal, which are contrary to the conditions of Brussels. In particular, the United Kingdom does not intend to enter into an agreement unless it has its laws.
Its purpose is to conclude a trade agreement similar to the one that the EU has concluded with Canada, Japan, and South Korea. Great Britain must be outside the jurisdiction of European courts. Recall that earlier, the chief EU negotiator, Michel Barnier, stated that a similar Canadian trade agreement with the UK is impossible due to the higher volume of mutual trade, and any transaction should imply the proximity of EU and UK laws. Thus, the conclusion of a trade agreement during the transition period is unlikely. GBP is weakening today against its main competitors – EUR, USD, and JPY.