Why Are Moderna Stocks Soaring This Week?

Investing.com -- Moderna Inc. (NASDAQ:MRNA) shares rose by 11.7% on Tuesday and continued to increase by 2.3% on Wednesday. This surge occurred amid rising concerns over avian influenza following reports of the first human death linked to the currently circulating H5N1 strain.

The Centers for Disease Control and Prevention (CDC) noted that although no person-to-person transmission has been detected, there has been an increase in H5 virus detections in wastewater, while the overall risk to the public remains low.

The stock movements reflect growing investor interest in vaccine developers, coinciding with the CDC reporting an uptick in cases of influenza, COVID, and Respiratory Syncytial Virus (RSV) based on wastewater testing. Moderna, known for its COVID-19 vaccine, has a product on the market for RSV and recently received $176 million in funding from the U.S. Department of Health and Human Services to develop a vaccine for H5N1 avian influenza.

Bernstein analyst Courtney Breen commented on the situation: "Avian Influenza is the main driving force behind today's stock reaction. We note that the increase in other respiratory infections is not significant for Moderna because 1) MResvia has a very low market share in the RSV market, so the increased interest/vaccination will not be meaningful; 2) COVID vaccinations typically occur between September and December, and high infection rates tend to reduce vaccination as patients are recommended to wait 3 months or more after infection before subsequent vaccination; and 3) although MRNA has endemic influenza vaccines in development, it currently has no products on the market."

Moderna's stock movement indicates that investors are closely monitoring the company's potential to address emerging health threats.