The current downturn in Moderna's share price this week.
The current downturn in Moderna's share price this week.
Moderna's stock (MRNA 0.83%) was seeing a 9% decrease this week, as per information provided by S&P Global Market Intelligence, ending at Thursday's market close. This downturn seems to stem from investors cashing out after Moderna's share price surged by 25% the previous week.
The cause of the market fluctuation? Avian flu. Notifications of human cases of the H5N1 avian flu, also known as bird flu, in Australia and the U.S., led to a rise in various vaccine shares last week.
The sale of Moderna's shares was particularly noticeable early on Wednesday, with the stock dipping as low as 13.9%. However, Moderna showed signs of recovery after The Financial Times reported that the U.S. government was near to finalizing a contract to finance a late-stage clinical study of Moderna's experimental messenger RNA (mRNA) avian flu vaccine.
How substantial could avian flu be for Moderna?
Moderna's top brass didn't even hint at their experimental avian flu vaccine during the company's first-quarter conference call held recently. Investors might want to keep their enthusiasm in check for now.
Currently, the number of human avian flu cases is relatively low. While H5N1 has a high mortality rate, it isn't particularly contagious among individuals. There's been no indication thus far that the virus is evolving in a manner that boosts its transmissibility.
Is Moderna stock a wise investment in these dips?
Even in the absence of a significant chance for Moderna with its experimental avian flu vaccine, I believe the stock is a sensible investment choice during this price downturn. The company has other compelling catalysts approaching, such as the anticipated U.S. approval of its respiratory syncytial virus (RSV) vaccine.
The potential financing of Moderna's late-stage clinical study for its avian flu vaccine by the U.S. government could stem the tide of selling, making investing in Moderna's stock a strategic move during these dips. Despite the current low number of human avian flu cases and the virus's lack of increased transmissibility, the possibility of a treatment or vaccine holds potential financial value in the future.