Moderna, Inc. (NASDAQ: MRNA) shares were advancing strongly Monday on a sympathy move.
What Happened: Moderna shares, which peaked at $497.49 on Aug. 10, have since pulled back. After showing a lack of direction in the interim, the stock reclaimed the $400 level Monday on the back of positive tidings pertaining to rival COVID-19 companies Pfizer, Inc. (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX).
The Food and Drug Administration issued full approval Monday for the mRNA vaccine developed by Pfizer-BioNTech. A full authorization is likely to kickstart accelerated vaccine sales, premised on increasing adoption by those waiting on the sidelines.
The companies can now sell the vaccines directly to consumers as is the case with drugs cleared through the full approval route.
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The buying interest found in Moderna’s shares is based on hopes that the company’s COVID-19 vaccine — mRNA-1273 — is also likely to receive full licensure soon.
Where’s Moderna Headed? If Moderna can hold support around the $400 level and move higher, it could face next resistance around $415. On the downside, the stock has support around $374.
A solid catalyst to aid a move higher will be full approval for mRNA-1273. Moderna initiated filing for a rolling review of the biological license approval on June 1 compared to the May 1 filing by Pfizer. In all probability, a full approval, barring any regulatory hiccups, could come in mid- to late-September.
MRNA Price Action: At last check, Moderna shares were up 5.42% at $403.72.
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