The past few days have been littered with news with regards to the different vaccines that have been produced to tackle the coronavirus pandemic. One of the companies that is now in the limelight is Moderna (NASDAQ:MRNA), which has developed its own vaccine and on Wednesday, surged by as much as 11% on the back of a major development. The biotech company announced that it received a large order for its COVID 19 vaccine.
Order from Europe
Governments and institutions from all over the world have been waiting with bated breath for a vaccine for COVID 19. Yesterday, Moderna announced that the European Commission has given the go-ahead to order as many as 80 million doses of the company’s coronavirus vaccine.
However, that is not all. It was further pointed out that the European Commission has an option of ordering as many as 160 million doses of the vaccine. It should be noted that it is only the latest supply deal that has been signed by Modern.
In recent times, Moderna had been successful in tying up supply deals with Switzerland, United States, United Kingdom, Qatar, Canada, and Israel. However, it is also necessary to recognize that the latest order represents a massive order.
Although Moderna did not reveal any financial details, it is believed that the initial order could be worth as much as $1.5 billion. If the option for additional orders is taken up, then the sum could be doubled.
While it is a major development, investors should keep in mind that the deal has not been locked up yet. The member countries of the European Union are going to conduct a short review before everything is confirmed.
In addition to that, the vaccine would also need to be approved by the authorities before Moderna can start shipping it. In this regard, it is necessary to note that a rolling review was started on November 17.
Another major bullish catalyst for Moderna is the granting of the Emergency Use Authorization from the United States Food and Drug Administration.
The news regarding the COVID 19 vaccine is a major development but in addition to that, the company is looking to use its mRNA technology to roll out as many as 50 more medicines and vaccines. That could provide Moderna with enormous growth potential in the long run. Investors could consider keeping an eye on the Moderna stock over the course of the coming weeks.
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