The shares of Moderna surged tremendously on Monday after there was enthusiasm regarding their use as coronavirus vaccines. There were talks that discussed the potential of the mRNA to combat other ailments like malaria or cancer. The rally on Monday came after BioNTech spoke to investors about an earnings call that the company is pushing towards plans for human trials regarding flu and malaria vaccines- and then looking towards cancer treatments.
Moderna- The Tesla of Biotech?
It is expected that the trials will completely rely on the messenger RNA technology of Moderna- which is a completely new type of vaccine which was being used to protect individuals against the coronavirus. Researchers believe that the technology would also be able to solve the challenges that come up in the development of vaccines for other infectious diseases as well as cancer. This technology is also used by BioNTech in their coronavirus vaccines.
Such groundbreaking news led to the shares of Moderna increasing by around 17% to end the day at a sum of $484.47, while BioNTech ended the day at $447.23. The German company also went on to report impressive quarterly results- as they posted a sales sum of $6.24 billion in the second quarter which was more than the consensus estimate of $3.83 billion. Although MRNA and BioNTech are currently dealing only in coronavirus vaccines, they are assured of the technology’s efficiency in combating other diseases- even cancer.
Michael Yee, the managing director of Yee, stated that Moderna was functioning as the Tesla of Biotech- with the stock having a huge valuation which was based on high investor expectations posed about its future. He further added that this company was an innovation and disruption technology play- due to the company’s technology to supplant traditional medicines by creating vaccines that would serve the purpose much better.
