All eyes are on the drug makers vying to develop the first safe and effective coronavirus vaccine. Global COVID-19 cases have crossed the 15 million mark, with at least 634,000 deaths worldwide. In the United States alone, 4.1 million cases have been reported with at least 144,000 deaths, as of July 24. With cases increasing every day, the country has limited ability to completely stop the spread of the virus until there is a vaccine on the market.
Currently, 198 coronavirus vaccines are in development with 19 in clinical trials. Among them, Modern (NASDAQ: MRNA) has attracted a lot of attention. Vaccine development generally takes many years, but due to the urgency and the increase in cases, the process has accelerated. In April, the Advanced Biomedical Research and Development Authority awarded Moderna $ 483 million in funds to accelerate the development of its vaccine. Moderna entered the limelight on July 14 when announced positive news with its interim results from its phase 1 trial for its COVID-19 vaccine candidate.
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Vaccine race is underway
The results of the analysis of the modern phase 1 open-label study of its candidate for the mRNA-1273 vaccine were published in The New England Journal of Medicine. The possible RNA-based vaccine of the Moderna coronavirus aims to provide immunity by introducing genetic material or RNA. Biotech and pharmaceutical companies are developing COVID-19 vaccine candidates in nine different categories, and an RNA-based vaccine is just one. This interim analysis “evaluated a vaccination schedule of two doses of mRNA-1273 administered 28 days apart at three dose levels (25, 100, 250 µg) in 45 healthy adult participants ages 18 to 55, and reports the results. until day 57 “.
The results showed that the vaccine was safe and successfully neutralized the antibodies in all participants, meaning that it prevented infection by new coronaviruses. The Moderna phase 2 trial, whose study began on May 29, is in the process of further evaluating the vaccine. Through phase 2, Moderna wants to “assess the safety, reactogenicity, and immunogenicity of two mRNA-1273 vaccines administered 28 days apart.”
Moderna will begin its Phase 3 ‘Cove’ study with 30,000 participants on July 27 with a partnership with technology firm Medidata. The main objective of the phase 3 trial is to verify whether the “primary prevention endpoints of symptomatic Covid-19 disease are achieved in the vaccine-treated group”.
The company has completed the manufacture of the vaccines necessary for phase 3. It is already preparing to deliver 500 million and one billion doses a year, even before phase 3 begins, which is a bold move considering that many things can still go wrong.
The shares of this biotech company could skyrocket if it wins the vaccine race. But keep in mind that, in addition to the COVID-19 vaccine that is being tested, Moderna does not have any other approved product on the market. Currently, he has many vaccines in development for his development that are in phase 1 or in preclinical stage.
Other pharmaceutical companies are also rushing to develop the first safe and effective coronavirus vaccine, which includes AstraZeneca (NYSE: AZN), which is in the process of making a phase 2/3 test now, in conjunction with a partnership with the University of Oxford.
In the meantime, Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) I have received a “Fast Track” Designation from the U.S. Food and Drug Administration for two vaccine candidates in ongoing phase 1/2 clinical trials in the U.S. and Germany Johnson and Johnson (NYSE: JNJ) It is also working on a possible vaccine for COVID-19 and hopes to start the phase 1 / 2a clinical trial in the second half of July.
the New York Times He reported that while Johnson and Johnson and AstraZeneca assured lawmakers that they would make millions of doses of the vaccine without benefit, Moderna made no such promise.
What investors can expect
Moderna’s shares have soared 256% to date, with the S&P 500 falling by almost 1%. Hopes rose after their positive Phase 1 trial results, raising the stock by 32% in the week ending July 17. During the same period, the shares of AstraZeneca, Pfizer and BioNTech have gained 14.7%, 9.6% and 2.9%, respectively.
Image source: Y graphics.
There are also many risks involved, including additional trials, regulatory approvals, and a competitor beating Moderna to market with an approved vaccine. With the world desperately waiting for a vaccine, any company that succeeds in its coronavirus vaccine attempt would be the best news of the year, but not Moderna’s actions if they fail to win the race.
A carefully selected basket of biotech stocks involved in the development of the coronavirus vaccine could be profitable for aggressive investors willing to manage the risk of any unfavorable news. That said, Moderna’s promising Phase 1 results make it a good stock of coronaviruses to buy before the Phase 3 test results release.
