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Moderna climbs 7% as Morgan Stanley says it could fill a vaccine-demand void left by Pfizer

Emily Graffeo   

Moderna climbs 7% as Morgan Stanley says it could fill a vaccine-demand void left by Pfizer
Stock Market2 min read
  • Shares of Moderna gained as much as 7% on Tuesday as Morgan Stanley said that the biotech company may provide the vast majority of COVID-19 vaccine doses to the US and make up for a potential shortfall of Pfizer vaccines.
  • According to Morgan Stanley, Moderna could provide roughly 120 million doses to the US before the end of the first quarter of 2021.
  • Morgan Stanley has an "overweight" rating for Moderna and a $100 price target for the stock. Shares hovered around $168 Tuesday morning after paring back earlier gains.
  • Watch Moderna trade live here.

Shares of Moderna gained as much as 7% on Tuesday to reach $170. The jump came as Morgan Stanley said that the drugmaker may provide the vast majority of vaccine doses to the US and make up for a potential shortfall of Pfizer vaccines.

The US reportedly rejected an offer from Pfizer for more COVID-19 vaccine doses, and may only be able to order 100 million Pfizer doses until at least next June.

According to Morgan Stanley, Moderna will deliver 20 million doses of its vaccine to the US before the end of 2020, and an additional 85 million to 100 million doses in the first quarter of 2021.

If Moderna ramps up production and gathers enough raw material, it could provide up to 1 billion doses globally of its vaccine in 2021. Moderna has a contract with the US government for 100 million doses, and options for 400 million additions doses.

Read more: Morgan Stanley's consumer analysts share 13 high-conviction global stocks to buy to capitalize on the continuing economic recovery

"Overall, if Modern can ramp closer to the top end of its range at 1B doses, it could provide the vast majority of doses to the US. We look forward to clarity on the doses available to the US in the coming weeks," Morgan Stanley said.

The news comes as investors worry the US could struggle to secure additional doses of the Pfizer vaccine before next summer given the company's commitments to other countries.

Moderna also announced on Tuesday that Switzerland increased its confirmed order commitment from 4.5 million to 7.5 million doses of the coronavirus vaccine.

Morgan Stanley has an "overweight" rating for Moderna and a $100 price target for the stock. Shares hovered around $168 Tuesday morning after paring back earlier gains. Moderna is up over 750% year-to-date.

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