Moderna (MRNA) surges amid Omicron fears: A COVID stock to buy?

Highlights

  • At the start of the trading session on Monday, November 29, the MRNA stock climbed 11 per cent at 9:45 AM EST.
  • Moderna claims that the Omicron variant of the coronavirus includes mutations seen in the Delta variant.
  • Since the beginning of this year, Moderna developed strategies to anticipate new variants of the coronavirus.

The stock of Moderna Inc. (NASDAQ:MRNA) surged rapidly at market open as the company had announced that it is working on a new vaccine to fight the new strain of the coronavirus- Omicron.

At the start of the trading session on Monday, November 29, the MRNA stock climbed 11 per cent at 9:45 AM EST. The biotechnology company has said that the vaccine could be ready by early 2022 and it has mobilized workers to start working on Omicron.

Moderna claims that the Omicron variant of the coronavirus includes mutations seen in the Delta variant, that could increase the transmissibility and mutations observed in the Delta and Beta variants.

The company's COVID-19 vaccine (mRNA-1273) is authorized as a booster for many populations and Moderna is working on it to test its ability to neutralize the Omicron variant and the data will be released in the next few weeks.

Also Read: 3 Canadian COVID stocks to buy amid Omicron’s emergence

Since the beginning of this year, Moderna developed strategies to anticipate new variants of the coronavirus. The strategy has three response levels if the mRNA-1273 fails to boost immunity against the Omicron variant.

Is Moderna (MRNA) stock a buy?


Moderna's stock has seen massive growth since the beginning of the pandemic and as the fight against coronavirus continues, Moderna could attract investors' attention.

Omicron variant vaccine by Moderna

© 2021 Kalkine Media Inc.

The biotechnology company's vaccine is popular across the world and as the new variant is being detected in many countries, Moderna could come up with the vaccine for the new strain within the specified period.

In the last seven days, MRNA stock surged 16.6 per cent and it has skyrocketed by 215.5 per cent year-to-date (YTD), outperforming the NASDAQ Composite Index's growth of 162.5 per cent.

Bottom line


Moderna's financials were solid in the third quarter of this year as it achieved total revenue of US$ 4.97 billion in comparison to US$ 157 million in Q3 2020.

In addition, the company posted a net income of US$ 3.3 billion in Q3 2021, against a net loss of US$ 233 million in the third quarter of the previous year.

Also Read: Chembio (CEMI) is rising. A COVID stock to buy?

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