Vaccine Makers See Surge in Stock Prices Amid Bird Flu Concerns
Moderna Leads the Charge
Moderna’s stock price soared 11.7% on Tuesday, driven by the first reported bird flu death in the US. The vaccine maker’s shares were on track to gain 10% for the week as of Wednesday, despite a brief dip of nearly 4% early in the day.
Government Funding Boosts Development
In July 2024, Moderna received a significant boost when it was awarded $176 million from the US government to advance the development of its mRNA H5N1 (bird flu) vaccine. This funding came after an outbreak of the virus in cows infected three dairy workers, sparking concerns of a potential human outbreak.
Bird Flu Cases on the Rise
As of January, the CDC reported 66 confirmed cases of H5N1 in the US since 2024. While the risk to the general public remains low, individuals with job-related or recreational exposures to infected birds or other animals are at greater risk of infection.
Moderna’s Post-Pandemic Struggles
After experiencing a massive surge in revenue following the development of its Covid-19 vaccine, Moderna has struggled to maintain momentum in a post-pandemic world. The company’s revenue fell 64% to just below $7 billion in 2023, and it reported a loss of roughly $12 per share.
Wall Street Expectations
Despite this week’s rally, Moderna shares are down nearly 60% from last year. Wall Street analysts expect the company to report a loss of a little over $9 per share for the fiscal year 2024 and for sales to halve from the prior year.
Other Vaccine Makers See Gains
Other companies developing mRNA bird flu shots also saw significant gains on news of the bird flu death. Novavax surged nearly 11% on Tuesday, while German biotech firm CureVac rose more than 4%. CureVac is developing an mRNA bird flu shot in collaboration with Indian pharma giant GlaxoSmithKline.
Pfizer Sees Modest Gain
Pfizer ticked up a modest 0.9%, while GSK itself dropped 1%. An uptick in COVID-19 cases reported by the CDC also helped prop up vaccine makers earlier this week.
Analysts’ Outlook
More than half of analysts tracked by Bloomberg have a Hold rating on Moderna’s stock, but on average, they see shares rising to $74 over the next 12 months, implying a 56% gain from their current level.
Leave a Reply