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Moderna surges 10% after Trump says US government reached deal for 100 million doses of its coronavirus vaccine

Carmen Reinicke   

Moderna surges 10% after Trump says US government reached deal for 100 million doses of its coronavirus vaccine
Stock Market2 min read

  • President Donald Trump on Tuesday announced that the US government reached a deal with Moderna for 100 million doses of its coronavirus vaccine candidate.
  • Shares of Moderna spiked as much as 10% on Wednesday.
  • The company separately announced the deal is worth $1.53 billion and gives the government the option to purchase up to 400 million additional doses of its coronavirus vaccine candidate.
  • Watch Moderna trade live on Markets Insider.
  • Read more on Business Insider.

Shares of Moderna spiked as much as 10% on Wednesday after President Donald Trump said on Tuesday that the US government has reached a deal to purchase 100 million doses of the company's coronavirus vaccine candidate.

Moderna announced separately on Tuesday that the deal is worth $1.53 billion, and that it gives the government the option to purchase up to 400 million additional doses of its coronavirus vaccine candidate, mRNA-1273. The COVID-19 vaccine began late-stage human trials in July.

The US government previously awarded Moderna $955 million for vaccine development — the new round of purchases brings its total investment to $2.48 billion, the company said in a press release.

Read more: Moderna's CEO shared a detailed timeline for when we'll know if its coronavirus vaccine works, and cautions that you might not get a shot until the spring

"We are investing in the development and manufacture of the top six vaccine candidates to ensure rapid delivery," Trump said during a Tuesday press conference at the White House. "The military is ready to go. They're ready to deliver a vaccine to Americans as soon as one is fully approved by the FDA, and we're moving very close to that approval."

The US government also has made agreements with other pharmaceutical companies for potential COVID-19 vaccines, including Pfizer, Johnson and Johnson, Sanofi, and GlaxoSmithKline.

The deals are part of the Trump administration's Operation Warp Speed program, which is devoted to accelerating the development, manufacture, and distribution of COVID-19 vaccines.

Moderna had gained 253% year-to-date through Tuesday's close.

Read more: The CEO of an $815 million ETF provider explains how to build the perfect portfolio for today's market using just 3 low-cost funds

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