Moderna, Inc., (NASDAQ: MRNA) saw its shares move upward Wednesday, on news of a manufacturing and delivery deal with the U.S. government.
The Cambridge, Mass.-based biotechnology company announced Tuesday that the U.S. government has secured 100 million doses of mRNA-1273 as part of Washington’s goal of securing early access to safe and effective COVID-19 vaccines for the American people.
Tuesday’s award of up to $1.525 billion is for the manufacturing and delivery of 100 million doses of mRNA-1273 including incentive payments for timely delivery of the product.
Under the terms of the agreement, the U.S. government, as a part of Operation Warp Speed, will also have the option to purchase up to an additional 400 million doses of mRNA-1273 from Moderna.
The U.S. government has announced that consistent with its commitment to free access to COVID-19 vaccines, Americans will receive mRNA-1273 at no cost for the vaccine itself. As is customary with government-purchased vaccines, healthcare professionals could charge for the cost of administering the vaccine.
According to CEO Stephane Bancel, "We appreciate the confidence of the U.S. government in our mRNA vaccine platform and the continued support.
"We are advancing the clinical development of mRNA-1273 with the ongoing Phase 3 study being conducted in collaboration with NIAID and BARDA. In parallel, we are scaling up our manufacturing capability with our strategic partners, Lonza, Catalent and Rovi, to address this global health emergency with a safe and effective vaccine."
Shares in MRNA gained $1.39, or 2%, in Wednesday’s first hour to $70.36.
