What Happened?
Shares of biotechnology company Moderna (NASDAQ: MRNA) fell 3.5% in the afternoon session after the stock retreated, giving back some of the strong gains from the previous session that were fueled by reports of potential buyout or partnership discussions.
The stock had surged nearly 14% during the prior trading day. This significant jump was driven by multiple reports indicating Moderna was in strategic negotiations with at least one major pharmaceutical company regarding a potential acquisition. The speculation came as the biotech firm had faced pressure from tapering sales of its COVID-19 vaccines. The decline represented a partial reversal of the previous session's sharp rally as some of the initial excitement appeared to cool.
The shares closed the day at $27.16, down 3.6% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Moderna? Access our full analysis report here.
What Is The Market Telling Us
Moderna’s shares are extremely volatile and have had 54 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.
The previous big move we wrote about was 18 days ago when the stock gained 0.4% on the news that the company presented promising early data for its investigational cancer antigen therapy, mRNA-4359, from a Phase I/II study. The therapy, when used alongside Merck's Keytruda, showed positive results in melanoma patients. Data presented at the European Society for Medical Oncology Congress revealed a 24% objective response rate, which measures tumor shrinkage. The rate of response increased significantly to 67% in a subgroup of patients whose tumors were positive for the PD-L1 biomarker. Furthermore, the study recorded a 60% disease control rate, meaning patients either saw their tumors shrink or their disease stabilize. The company also noted that the therapy had a manageable safety profile.
Moderna is down 35.3% since the beginning of the year, and at $27.16 per share, it is trading 50.3% below its 52-week high of $54.63 from October 2024. Investors who bought $1,000 worth of Moderna’s shares 5 years ago would now be looking at an investment worth $404.71.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.
