What Happened?

Shares of biotechnology company Moderna (NASDAQ: MRNA) jumped 3.8% in the morning session after the U.S. Food and Drug Administration (FDA) granted full approval for its Spikevax COVID-19 vaccine to be used in children. The approval covers children from six months through 11 years of age who are at an elevated risk for severe COVID-19. 

Previously, the vaccine was available to this age group only under an Emergency Use Authorization (EUA). This regulatory milestone transitions the vaccine to a standard approval pathway for this pediatric population. 

Moderna's CEO, Stéphane Bancel, stated that vaccination is an "important tool for protecting our youngest against severe disease and hospitalization." The company confirmed that its Spikevax vaccine will be ready for eligible children ahead of the 2025-2026 respiratory virus season, ensuring access for the upcoming fall and winter.

After the initial pop the shares cooled down to $33.92, up 3.4% from previous close.

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What Is The Market Telling Us

Moderna’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Moderna is down 19.2% since the beginning of the year, and at $33.92 per share, it is trading 72.9% below its 52-week high of $125.14 from July 2024. Investors who bought $1,000 worth of Moderna’s shares 5 years ago would now be looking at an investment worth $541.77.

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