Things are about to get very exciting for investors in Moderna Inc (NASDAQ:MRNA). A clinical trial evaluating a vaccine designed to protect against the new coronavirus starts on March 16th. The best part? Testing starts with 45 young, healthy volunteers with different doses of shots co-developed by NIH and Moderna Inc. The goal of this trial is to ensure that the vaccine doesn’t cause significant adverse side effects.
While other small cap biotechs put out press releases touting their ties to the coronavirus, Moderna Inc has been quietly working on a vaccine. This is what a biotech is supposed to do and the potential is enormous.
NASDAQ:MRNA Technical Picture
NASDAQ:MRNA is set up well technically. There is a strong uptrend support line at $20. Below $20, there’s strong support at the $17.80 support zone. With the stock having traded sideways for the past year, having risen only 2%, the stock is set up well to outperform and climb back above the $36 high.
Moderna, Inc., a clinical stage biotechnology company, develops therapeutics and vaccines based on messenger RNA for the treatment of infectious diseases, immuno-oncology, rare diseases, and cardiovascular diseases. As of February 15, 2019 the company had 11 programs in clinical trials and a total of 20 development candidates in six modalities comprising prophylactic vaccines, cancer vaccines, intratumoral immuno-oncology, localized regenerative therapeutics, systemic secreted therapeutics, and systemic intracellular therapeutics. It has strategic alliances with AstraZeneca, Merck & Co., Vertex Pharmaceuticals, Biomedical Advanced Research and Development Authority, Defense Advanced Research Projects Agency, and Bill & Melinda Gates Foundation; and a research collaboration with Harvard University. The company was formerly known as Moderna Therapeutics, Inc. and changed its name to Moderna, Inc. in August 2018. Moderna, Inc. was founded in 2010 and is headquartered in Cambridge, Massachusetts.
Coronaviruses are a family of viruses that can lead to respiratory illness, including MERS and SARS. Coronaviruses are transmitted between animals and people and can evolve into strains not previously identified in humans. On January 7, 2020, a novel coronavirus was identified as the cause of pneumonia cases in Wuhan, Hubei Province of China.
mRNA-1273 is an mRNA vaccine against the novel coronavirus encoding for a prefusion stabilized form of the Spike (S) protein, which was designed by Moderna in collaboration with NIAID. The S protein complex is necessary for membrane fusion and host cell infection and has been the target of vaccines against the coronaviruses responsible for Middle Eastern Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS).
NASDAQ:MRNA Cash Position
While other biotechs are using the coronavirus to pump their stocks and raise cash, NASDAQ:MRNA is well capitalized. Moderna Inc is sitting on cash and investments of $1.26 billion as of December 31, 2019. Overall, Moderna has access to up to $2 billion in capital to invest in the business.
For investors looking to play the coronavirus outbreak, there’s no better play than NASDAQ:MRNA. With its vaccine entering human clinical trials, expect a major share price spike. There is an urgent need for a vaccine and no other biotech is better positioned that Moderna Inc. Dips are to be bought as NASDAQ:MRNA looks to be significantly undervalued given its enormous potential. Good luck to all!
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Disclosure: We have no position in NASDAQ:MRNA and have not been compensated for this article. We may initiate a LONG position in NASDAQ:MRNA after 72 hours of publication.