Thursday, October 07, 2021 1:56:04 PM
Why Moderna Stock Is Rebounding Today
The company plans to build a new manufacturing facility in Africa.
Keith Speights
(TMFFishBiz)
Oct 7, 2021 at 11:33AM
Finland halted the use of Moderna's vaccine in younger men.
The company's new facility in Africa could help it ease tensions with the White House.
Investors are also cautiously optimistic about Moderna's ongoing patent litigation.
What happened
Shares of Moderna (NASDAQ:MRNA) were rebounding somewhat on Thursday after several days of declines. The stock was up 4.6% as of 10:59 a.m. EDT today.
Moderna actually had more bad news today. Finland joined Denmark and Sweden in pausing the use of the company's COVID-19 vaccine for some individuals due to concerns about a rare heart inflammation issue. Finland's pause applies to men under age 30, the demographic with the highest risk for the cardiovascular problems.
However, Moderna also announced plans to build a new facility in Africa that will be able to produce up to 500 million doses of its messenger RNA (mRNA) vaccine each year.
In addition, the company's appeal to a Federal Circuit Court to invalidate two of Arbutus Biopharma's (NASDAQ:ABUS) patents is underway. Some investors appear to be cautiously optimistic about Moderna's chances with this case, although the most likely outcome is a settlement.
A healthcare professional giving a shot to a person.
IMAGE SOURCE: GETTY IMAGES.
So what
Why would the news about the African manufacturing facility and the federal court appeal have a bigger impact on the vaccine stock than Finland's pause of giving Moderna's vaccine to young men? Politics seems to be a likely factor with the former matter.
Politico reported earlier today that Moderna has been at odds with the Biden administration over producing more doses for use internationally. So the company's announcement about its plans to build the facility in Africa could help reduce the tensions with the White House.
As for the federal case, anything that emerges from the hearing that indicates a scenario where Moderna would pay less to Arbutus could be a positive sign for the biotech.
Now what
Moderna didn't provide any details about when construction would begin for its facility in Africa. The company also stated that it "expects to begin a process for country and site selection soon." That might not be enough to satisfy U.S. government officials.
Again, the odds seem stacked against Moderna in the patent case. However, the company could reach a settlement with Arbutus that investors like.
As for the heart inflammation issues, so far only Scandinavian countries have paused the use of Moderna's vaccine for some groups. If more nations follow suit, this could become a bigger problem for the company.
Recent ABUS News
- Arbutus Reports First Quarter 2024 Financial Results and Provides Corporate Update • GlobeNewswire Inc. • 05/02/2024 11:30:00 AM
- Arbutus Announces Retirement of Chief Scientific Officer, Michael J. Sofia, PhD, Effective December 31, 2024 • GlobeNewswire Inc. • 05/02/2024 11:25:00 AM
- Arbutus to Report First Quarter 2024 Financial Results and Provide Corporate Update • GlobeNewswire Inc. • 04/18/2024 11:30:00 AM
- Arbutus Biopharma Announces Claim Construction Ruling in its Ongoing Patent Infringement Lawsuit Against Moderna • GlobeNewswire Inc. • 04/04/2024 12:30:49 PM
- Arbutus to Participate in Two Upcoming Investor Conferences • GlobeNewswire Inc. • 03/08/2024 12:30:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 03/05/2024 09:48:49 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/29/2024 12:31:15 PM
- Arbutus Reports Fourth Quarter and Year End 2023 Financial Results and Provides Corporate Update • GlobeNewswire Inc. • 02/29/2024 12:30:00 PM
- Arbutus to Report Fourth Quarter and Year End 2023 Financial Results and Provide Corporate Update • GlobeNewswire Inc. • 02/15/2024 12:30:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 09:38:59 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 03:48:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/06/2024 12:55:14 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/06/2024 12:55:02 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/06/2024 12:54:25 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/06/2024 12:54:09 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/08/2024 12:31:16 PM
- Arbutus Announces 2024 Corporate Objectives and Provides Financial Update • GlobeNewswire Inc. • 01/08/2024 12:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/04/2024 09:09:10 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 11/21/2023 01:00:24 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/09/2023 09:02:39 PM
- Arbutus to Present at Jefferies London Healthcare Conference • GlobeNewswire Inc. • 11/08/2023 12:30:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/07/2023 09:18:57 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/07/2023 12:31:16 PM
- Arbutus Reports Third Quarter 2023 Financial Results and Provides Corporate Update • GlobeNewswire Inc. • 11/07/2023 12:30:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/07/2023 12:16:12 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM