Why Moder’s stock fell 32% in December

what happened

Shares of Biotech Modern (Nasdaq: MRNA)The COVID-19 vaccine maker fell 31.6% in December, according to data from S&P Global Market Intelligence.

For reference, this S&P 500 Returned 3.8% last month.

Vial with

Image Source: Getty Images.

So what

We are grateful for the 32% drop in Moderna stock in the last month. After all, the shares rose to 581% in 2020 by the end of November, so it’s no surprise that some investors took some money off the table in December. Moderna’s stock rose 434% at the end of the year.

When the shares of Moderna began their long climb in early 2020, the company announced that it was developing a vaccine for vaccination against the novel coronavirus disease, Covid-19.

As the chart below shows, the stock had a sharp run up in November. It dropped 126% that month, running from the good news about MRNA-1273, the messenger RNA-based vaccine candidate at the time. On November 30, Modern announced the positive final results of its Phase 3 study. As I wrote earlier, “It has been found that its vaccine candidate effect is 94.1% effective in preventing Covid-19, and it has not received any serious safety concerns. ) Requested for) Emergency Use for MRNA-1273 Author Authorization (EUA). ”

Then came the “big news” on December 18: Moderna announced that the FDA had authorized the emergency use of MRNA-1273. Shares, which were moving downwards during that December, fell about 3% that day. The reason for the stock’s decline on such horrific news is that this news was widely expected and its price was already up during November.

Distribution of the U.S. vaccine began the next day, and the first administration of the two-dose vaccine began on December 20.

MRNA chart

Data by vicharts.

Now what

On December 18, Moderna said it would withdraw from the U.S. by the end of December 2020. The government expects to deliver about 20 million doses. Expect 100 million and 125 million doses globally, with 85 million in the first quarter of 2021. U.S. 100 million of them available in the US. A total of 200 million doses were ordered by the government, with the option to purchase up to an additional 300 million doses.

The rollout of the modern vaccine in the states was slower than expected in December, but that’s not its fault. The Federal Government’s Operation Operations is in charge of speed distribution.