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MRNA Stock News: Moderna defies gravity, set to rise amid coronavirus vaccine rush

  • NASDAQ: MRNA is set to extend its fall as rival AstraZeneca moves forward with large coronavirus trial.
  • Concerns about Moderna Inc's low-temperature storage needs is also weighing on the stock.
  • A probe by the US Department of Defense is a third adverse factor. 

Update: NASDAQ: MRNA is set to extend its gains on Friday after rising on Thursday – defying the broader sell-off in stocks. The S&P 500 crashed by 3.5% as the White House is reportedly rushing through a coronavirus vaccine as early as October. Moderna is one of the leaders in the race, conducting a Phase 3 trial of its immunization candidate. 

Buy every company reporting coronavirus-related progress – that seemed to be the modus operandi of investors in recent months. However, as time passes by, markets are separating the wheat from the chaff – taking a closer look at firms and often selling off shares.

That may be Moderna's case. The Massachusets-based pharmaceutical firm is at the forefront of developing COVID-19 immunization – but has run into a few hurdles.

Here are three MRNA downers: 

1) AstraZeneca's trial: While Moderna Inc. is at an advanced stage of testing its coronavirus vaccine candidate, a project by the University of Oxford and AstraZeneca is not only considered the world leader – but also announced a broad 50,000-strong trial starting in the US. Investors may prefer picking a more significant contender.

2) Cold feet due to freezing needs: Reports suggest that Moderna's COVID-19 solution needs to be stored at extremely low temperatures. Keeping medicine in cool and dark places is not a novelty, but the need for additional care could make distribution more complicated. That may also keep Moderna behind.

3) DOD probe: The US Department of Defense is looking into a claim by Knowledge Ecology International that MRNA failed to disclose the use of government grants in its patent applications. That would be a violation of federal law. The investigation is at the best case a distraction from the urgent coronavirus project. 

These three issues could further pressure Moderna Inc's shares. 

MRNA Stock Price

NASDAQ: MRNA close Monday's session at $64.89 – the lowest since early July. At the time of writing, the equity is changing hands at $63.20 in pre-market trading, representing an additional fall of over 2%. 

Critical support awaits at $62.60, the pre-surge August low, and then at $52.20. Resistance is at the recent peak of $70.50, followed by the 52-week high of $95.20 it reached when it announced a new and promising test.

Author

Yohay Elam

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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