As Modern (NASDAQ: MRNA) and his peers take too long to fully develop and approve their current candidates for coronavirus vaccines, they could pay the price. The government states that it is pursuing ambitious goals for this. If not, they will receive reduced payments from public sector entities.
Moderna, for example, will receive $ 1.5 billion from the government if its MRNA-1273 candidate is approved for use by January 31, 2021. If not, then that payout will be chopped to $ 1.2 billion.
Reuters reported on Friday that similar conditions are in place for other companies involved in developing and testing vaccine candidates to block the SARS-CoV-2 coronavirus and / or the disease that causes it, COVID-19.
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It did not specify amounts as deadlines, but said that large pharmaceutical company Pfizer (NYSE: PFE) allowed it to receive its payment from the government only in the event that its candidate BNT162b2 – in development with Germany-based BioNTech (NASDAQ: BNTX) – wins approval.
No coronavirus / COVID-19 vaccine candidate has yet been approved by a major national regulator for use. Moderna, which is currently in Phase 3 clinical trials, is considered by many to be the precursor to first gaining an important regulatory green light.
Both the efforts of Moderna and Pfizer are included in the government program Operation Warp Speed, a set of financial and supportive incentives designed to get an efficient vaccine to the public within months.
The possibility of Moderna getting less for its hard work did not seem to limit investors on Friday, as it boosted the company by almost 2%, while the S&P 500 market del. Shares of Pfizer fell almost 0.3% daily, while BioNTech fell 3.3%.
