Moderna soars to all-time high amid news of Covid-19 Vaccine deal

Moderna saw its share price soar another 14% last Friday to close the week at an all-time high of US$94.86 a share.

What’s the Moderna share price update?

Shares of Moderna Inc continued to burgeon, hitting an all-time high on Friday 17 July 2020, following reports that the company is negotiating an advance purchase deal with the European Union (EU) for its Covid-19 trial vaccine.

The US pharmaceutical company then saw its stock rally over 14% to hit US$95.21 per share later in the day – its highest price ever, based on IG data. The stock was among the top five most traded shares of the day on the IG platform.

Moderna eventually closed the session just slightly under at US$94.86 a share.

IG market analysis show that ‘sells’ form 51% of all trades on the Moderna counter this month. Additionally, 99% of IG client accounts with open positions in this market expect Moderna’s share price to rise.

What’s behind the Moderna stock rally?

Even before news of the EU deal had broken out, Moderna was already experiencing a surge in share price.

Last Tuesday 15 July, the biotechnology company announced interim Phase 1 study results of mRNA-1273, its vaccine candidate against Covid-19. Following that, the pharmaceutical stock hit a two-month high of US$84.75 per share on Wednesday 15 July.

That evaluation report had reaffirmed an earlier set of ‘positive’ interim data first revealed on 18 May 2020. The results showed that mRNA-1273 ‘induced rapid and strong immune responses against’ the coronavirus.

Moderna added in the update that its Covid-19 vaccine candidate ‘was generally safe and well-tolerated, with no serious adverse events reported through Day 57’.

Moderna is one of many drug manufacturers in the US are currently in the race to finding a Covid-19 vaccine. Other companies with vaccine candidates include Pfizer, Gilead Sciences, Johnson & Johnson, Novavax and Inovio Pharmaceuticals.

Elsewhere, China’s Sinovac Biotech, UK’s GlaxoSmithKline and British-Swedish company AstraZeneca have also begun vaccine trials of their own.

Are you looking to buy long Moderna Inc shares without having to trade the actual asset? IG’s CFD feature allows you to do just that. Open an IG account today.

Moderna stock: The bullish outlook

Since the publication of the initial findings, some analysts have reiterated their ratings on the Moderna stock, even increasing their share price targets.

Piper Jaffray’s Edward Tenthoff raised his price estimate to US$134 from US$100, stating that the data ‘demonstrate clean safety and robust immunogenicity of the 100µg mRNA-1273 dose’.

In addition, he noted that ‘there were no neutropenia or lymphopenia’ in the participants as was present in BioNTech and Pfizer’s mRNA vaccine BNT162b1.

Meanwhile, Jefferies researcher Michael Yee, who called a ‘buy’ on Moderna alongside a US$90 price target, wrote: ‘Early vaccine data continues to look very promising, and has a very reasonable likelihood of working and protecting against infection.’

Why Moderna 'must deliver substantial positive pipeline data'

On the other hand, Bloomberg Intelligence pharmaceutical analysts Cinney Zhang and Sam Fazeli wrote on 15 July that the Phase 1 data is ‘inconclusive for Covid-19 prevention’.

They added that questions over mRNA-1273’s prevention effectiveness ‘may only be answered by its Phase III trial’ due to start on 27 July. Furthermore, side effects were a ‘mild concern’ in this round of testing, while ‘T-cell response to-date don’t look encouraging’.

In terms of share price, although Moderna’s stock value has skyrocketed over 200% this year, this has been predicated on the assumed success of mRNA-1273, as well as other pipeline therapies. However, ‘all of these…have yet to gain validation’, the analysts cautioned.

‘To add weight to its lofty valuation, Moderna must deliver substantial positive pipeline data’, they concluded.

How to trade US pharmaceutical stocks with IG

Are you feeling bullish or bearish on Moderna Inc's share price? Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform in a few easy steps:

  • Create a live or demo IG Trading Account, or log in to your existing account
  • Enter <Moderna Inc> in the search bar and select the instrument
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

React to global volatility

Market volatility continues as coronavirus concerns amplify. Trade with IG and take advantage of:

  • Tight spreads – from just 1 point on major indices, and 2.8 on US crude
  • Guaranteed stops – they’re free to use, and only incur a fee when triggered
  • Round-the-clock assistance – our highly skilled team are available when you need support

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.