The COVID-19 pandemic is responsible for most of the uncertainty facing investors right now. In spite of Nasdaq compound (NASDAQINDEX: ^ COMP) has gained ground during the global health crisis, large segments of the U.S. economy may be under threat until a permanent solution to the coronavirus is developed and widely distributed.
Therefore, investors are seeking biotech and pharmaceutical companies in the hope that one or more will provide the tools necessary to overcome the pandemic. On Wednesday morning, the Nasdaq Composite and Nasdaq-100 indices rose, largely due to favorable news from Modern (NASDAQ: MRNA) on the front of the vaccine. However, for every winner there are losers and rivals. Inovio Pharmaceuticals (NASDAQ: INO) He was one of the worst artists of the morning.
Why Moderna’s shares are on the rise
Moderna’s shares rose as much as 11% on Wednesday morning after clinical stage biotechnology announced the latest information from its phase 1 study of mRNA-1273, its candidate for the SARS-CoV-2 vaccine. Investors were satisfied with the results, which confirmed earlier indications of the potential of mRNA-1273.
Moderna published an interim analysis of their study, which included giving patients two doses of mRNA-1273 four weeks apart in varying dose amounts. According to the analysis, the vaccine did not cause any serious adverse events during the first 57 days of the study, although several patients reported minor side effects such as fatigue, chills, and injection site pain. The vaccine candidate resulted in considerable neutralizing activity, including antibody titers that were significantly higher than those in the control group of patients with confirmed diagnoses of COVID-19.
Image source: Modern
With these positive results in hand, Moderna is moving forward with its plan to begin a phase 3 trial of the vaccine candidate before the end of July. That advanced study will include 30,000 participants receiving doses of mRNA-1273, and will assess how effective it is in preventing people from contracting COVID-19 or experiencing symptomatic cases of the disease. The researchers will also look at whether it reduces the chances that people who become infected will experience severe symptoms of COVID-19 requiring hospitalization.
Moderna will join the Nasdaq-100 index, and Wednesday’s earnings will further justify its inclusion in that large-cap group. Shareholders are excited about the prospect that they could end up being the first to get a viable vaccine to fight COVID-19 at a time when effective responses are desperately needed.
Bad news for rivals.
What is good news for Moderna, however, was not good news for some of the other companies vying for a spot in the fight against COVID-19. Inovio’s shares also skyrocketed in 2020 due to his coronavirus efforts, but right now, the stage belongs to Moderna, and Inovio’s shareholders were not celebrating, as the stock fell nearly 9% at 11: 40 amEST.
Many have seen Inovio as the pioneer in the race to bring a viable coronavirus vaccine to market; It has already provided some encouraging early test results for its candidate, INO-4800. In addition, the company intends to advance phase 2/3 testing for INO-4800 this summer, placing it among the initial group of those conducting research at advanced stages.
However, this race does not necessarily have to have a single winner. Moderna and Inovio are taking different approaches to help the human body protect itself against COVID-19. Inovio uses DNA plasmids to encourage cells to create defenses, while Moderna uses messenger RNA. Researchers may eventually find that the best solution includes vaccines that use a combination of strategies to provide more complete protection. However, combined studies would have to be done to verify that even successful vaccines do not end up diminishing the effectiveness of the others.
There is still a long way to go before Moderna, Inovio, or any other company can declare victory over the coronavirus. That won’t stop investors and traders from jumping up and building stocks as those companies reveal more progress in their efforts.
