The first company to launch human clinical trials of its candidate for coronavirus vaccine in the United States – Modern MRNA – has signed a $ 1.5 billion coronavirus supply agreement with the U.S. government. The contract is accepted for the manufacture and delivery of initial 100 million doses of their potential coronavirus vaccine, mRNA-1273, with the price coming in at almost $ 30.50 per person for a two dose course of treatment (per one Reuters article).
The agreement with Moderna also includes incentive payments for timely delivery of the product. It also states that the US government has an option to purchase up to 400 million doses of Moderna’s potential coronavirus vaccine.
The U.S. government has entered into such deals under its Operation Warp Speed program to purchase hundreds of millions of doses of potential coronavirus vaccines from various companies, according to an article in The Economic Times. The United States has made advanced purchase agreements for potential candidates for coronavirus vaccines with Johnson & Johnson (JNJ), AstraZeneca Plc (AZN), Pfizer Inc (PFE) and BioNTech, and Sanofi and GlaxoSmithKline (GSK).
The progress of Moderna so far
Moderna, which develops this vaccine in collaboration with the National Institute of Allergy and Infectious Diseases, has now begun the Phase 3 clinical trial, and includes 30,000 healthy participants at approximately 100 research sites in the United States.
The participants in the trial will receive two 100 microgram doses of the vaccine as a placebo in a gap of approximately 28 days. In addition, participants and researchers will not be informed about who received the vaccine.
Infectious Disease Specialist Dr. Anthony S. Fauci expects the results of the trial to be out in November or December. He also mentioned that there was a ‘distinct possibility’ that the results might come sooner, per The Washington Post article. Recently, Moderna also received an additional $ 472 million in funding from the U.S. Government Biomedical Advanced Research and Development Authority (BARDA), which the company believes will provide support in the late-stage clinical development of the vaccine.
Moderna has also informed that it is also on track to deliver 500 million doses of 100 μg dose of mRNA-1273 per year, which could increase to 1 billion doses per year, beginning in 2021.
Modern ETFs to Profit
This fund is designed to provide direct exposure to biotech companies directly involved in testing and treating infectious diseases. Focus on advancement with focused exposure to the forefront of R&D, faxing, therapies and testing technologies. It has 57 shares in its course, with Moderna occupying third place at 5.62% share. The fund has raised $ 69.7 million in its asset base and costs 68 bps in annual fees (read: Do you need to invest in COVID-themed ETFs?).
This fund invests in companies that lead the charge to innovative solutions, instead of spending money on marketing and distribution by following the Nasdaq Healthcare Innovators Index. It has 206 shares in its course, with Moderna taking the top spot at 5.07%. BTEC costs 42 bps annual fees and has AUM of $ 100 million (read: Modern Turns Red Hot: Biotech ETFs to bet on).
The underlying MVIS US Listed Biotech 25 Index tracks the overall performance of companies involved in the development and production, marketing and sale of drugs based on genetic analysis and diagnostic equipment. It has about 24 securities in its portfolio, with 5.13% exposure to Moderna. Its AUM is $ 502.1 million and it has a spending ratio of 0.35% (read: How will Biotech ETFs respond to Q2 Earnings Release?).
The fund seeks investment results, before fees and expenses, that are consistent with the NYSE FactSet Global Genomics and Immuno Biopharma Index. It has about 46 securities in its basket with Moderna, and occupies a weight of 4.44%. It has a AUM of $ 143.5 million and a spending ratio of 0.47% (read: Top-Performing Biotechnology ETFs Amid Coronavirus Outbreak).
This ETF provides exposure to a range of companies developing therapies to treat cancer by utilizing the body’s own immune system. Holds 31 shares in its portfolio, and has around 3.67% exposure to Moderna. The fund has an AUM of $ 39.2 million. The product costs 79 basis points in annual fees (read: Biotech ETFs to profit from recent advances in cancer drugs).
Other broader biotech ETFs held by companies developing tests, vaccines, and coronavirus therapies include:
This fund seeks to provide exposure to U.S. biotechnology and pharmaceutical stocks and tracks the Nasdaq Biotechnology Index. It has an AUM of $ 9.43 billion with a spending ratio of 0.46% (read: 3 Hot Sector ETFs around during the Coronavirus crisis in Q3).
The fund seeks daily investment results, before fees and expenses, corresponding to the S&P Biotechnology Select Industry Index. It contains about 133 securities in its portfolio. It has AUM of $ 5.64 billion and a spending ratio of 0.35%.
