On Nov. 16, large-cap biotech Moderna reported that its experimental messenger RNA vaccine is nearly 95% effective at immunizing patients against COVID-19. This was the third time a coronavirus vaccine candidate demonstrated efficacy in a large-scale placebo-controlled phase 3 study, following Pfizer and BioNTech’s BNT162b2 and the Russian government’s Sputnik V.
Moderna’s mRNA-1273 is set to be released in a hypercompetitve coronavirus vaccine market. Even if commercialized, the vaccine could save many lives and still fail to live up to investors’ expectations. Though many investors are now bullish on Moderna stock, here’s why the savvy stock pickers should continue to proceed with caution.
A major milestone
The company’s vaccine trial recruited more than 30,000 participants at risk of contracting coronavirus at their geographical location. Out of this group, approximately half received a placebo while another half received the full two-dose schedule of the experimental vaccine.
