Moderna shares jump on U.S. vaccine deal

Shares of Moderna shot up nearly 10% at the market open before pairing their gains Wednesday, one day after President Donald Trump announced the U.S. would buy 100 million doses of its COVID-19 vaccine candidate.

Analysts said the deal confirms Moderna’s experimental vaccine is one of the leading contenders and that its $1.5 billion supply deal could lead to similar deals with other countries.

Moderna’s candidate is one of the few that have advanced to the final stage of testing, and the biotech company said it’s on track to be done in September.

Its price per dose comes to roughly $30.50 for a two-dose regiment. Analysts say increased competition is driving prices down as governments race to sign deals. All of the deals that the U.S. has made so far price COVID-19 vaccines between $20 and $42 with the exception of its agreement with AstraZeneca.

Shares of Moderna have more than tripled this year. Shares of another coronavirus developer, Novavax, shed roughly a fifth of their value Wednesday. Analysts say investors are worried that that company could be falling behind its rivals.