What happened
Modern (NASDAQ: MRNA), considered by some to be the leader in the coronavirus stock package at the moment, fell Tuesday by 3.9% on what was generally an emerging day for the broader stock market.
The most likely reason for this is the ruling of a Chinese pharmaceutical company, Sinopharm, which on Tuesday instituted a price range for its two COVID-19 vaccine candidates.
Image Source: Getty Images.
So what
Like Sinopharm, Moderna is in the late stages of testing a vaccine candidate, the rather promising mRNA-1273. Investors in Moderna might be mocked by the Chinese company’s announcement of a price range, as it could imply that one or both of Sinopharm’s candidates will soon be ready for regulatory scrutiny.
Probably almost right there – given the dire need of a vaccine – it would be made available for public consumption.
The chairman of Sinopharm, Liu Jingzhen, told China Guangming Daily that the faxes of his company would cost less than the equivalent of $ 145 for two doses, if one or both get regulatory approval. Liu did not indicate whether he meant the list price as the outside cost.
Well what
That price is well above Moderna’s declared “budget” range for mRNA-1273 from $ 32 to $ 37 per dose, and it is also higher than other Western developers’ price targets. But first-mover advantage will be significant with coronavirus / COVID-19 vaccines, and a relatively small biotech like Moderna could face a serious challenge in trying to compete as a runner-up.
