- NASDAQ: MRNA has surged after reporting promising interim results for its COVID-19 vaccine.
- Moderna Inc's coronavirus immunization scheme has five advantages over Pfizer's.
- The shares' close above the previous peak is a promising technical indication.
Does the early bird get the worm? Not necessarily. When it comes to the global race to beat COVID-19, there is room for various vaccine solutions to help the world emerge from the crisis. Thirst for any solution and production limits make every immunization scheme a winner at this point.
What about the long run? When the world is saturated with vaccines, quality may make a difference. So far, only two efforts have announced promising interim results from their covid efforts, with Moderna Inc coming second after the initial announcement from Pfizer and BioNTech.
However, there are five reasons why Moderna has the edge:
1) Storage temperature: Any logistical hurdle can be surpassed, but a lower barrier makes life easier. While Pfizer's vaccine needs to be stored in ultracold -70 to -80 celsius ahead of the final five days before distribution, Moderna's inoculation can survive 30 days at +2 celsius. That makes distribution far easier.
2) Efficacy rate: The difference between Pfizer's 90% and Moderna's 94.5% may sound like splitting hairs, but the PR effect of having a more efficient vaccine may encourage investors and also governments to opt for the latter.
3) Diversity: Moderna's CEO Stéphane Bancel stressed that his company's solution has been tested among high-risk patients and those who come from different ethnic backgrounds. That makes the results more robust and immediately adequate for a larger audience.
4) US government support: While Pfizer boasted about not taking money from Uncle Sam, Moderna has worked for hand in glove with the federal government. Dr. Anthony Fauci, America's top epidemiologist, was quick to hail Moderna's results. The backing of Washington – no matter the administration – is another win for Moderna.
5) Expertise: Moderna is focused exclusively on the Messenger RNA technology – that was the vision of founders Robert S. Langer, Derrick Rossi, Kenneth R. Chien, Timothy A. Springer and Noubar Afeyan.That would allow them to upgrade their vaccine rapidly and potentially ramp up production.
All in all, Moderna Inc's vaccine seems to be set up for greater success.
MRNA Stock Price
NASDAQ: MRNA closes at $97.95 on Monday, following the big news. As the chart shows, that is above the previous peak of $94.85 in July. The next target is $100.
Support awaits at $90, followed by $78.50, a high point in October.
See What you need to know about the dollar in the post-vaccine announcement world
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