Moderna Inc. shares jumped 11% in U.S. premarket trading after the company said a new vaccine to fight the omicron strain of the coronavirus could be ready by early 2022 if required.
The stock jumped 21% during Fridays global selloff amid concerns about the new variant, solidifying its position as the top performer on the S&P 500 year-to-date. The company mobilized hundreds of workers on Thanksgiving Day last Thursday in order to start work on omicron, Chief Medical Officer Paul Burton
said at the weekend.
Modernas mRNA technology is ideally suited to adapting vaccines to new variants, according to Piper Sandler analyst Edward A. Tenthoff, who has an overweight rating on the stock.
READ: mRNA Is Magic in Covid Vaccines. What Else Can It Do?: QuickTake
Moderna is in a better position to develop novel Covid-19 vaccine, and now has capacity to manufacture several hundred million vaccine doses every month, Tenthoff wrote in a note to clients on Sunday. SARS-CoV-2 is not going away and will provide years of future revenues, he added.
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