Moderna stock slipped Wednesday after the company said its updated Covid vaccine can take on a highly mutated strain nicknamed "pirola."
The updated vaccine generated a nearly ninefold to 11-fold increase in neutralizing antibodies targeting worrisome variants. That includes the pirola variant, also known as BA.2.86. Pirola isn't prevalent in the U.S. yet. But it has more than 30 mutations compared with previous omicron strains, meaning it could break through immunity generated by earlier booster shots or infections.
Importantly, Moderna said its updated shot generated protective antibodies capable of blocking EG.5 and FL.1.5.1. From Aug. 20 to Sept. 2, those strains accounted for a combined 36% of all sequenced Covid cases, according to the Centers for Disease Control and Prevention.
But on today's stock market, shares of Moderna stock dipped 1%, closing at 108.24.
Moderna Stock: Covid On The Rise
The news comes amid a rise in hospitalizations and deaths due to Covid. From Aug. 20 to Aug. 26, there was a nearly 16% increase in hospitalizations and a jump of nearly 18% in deaths due to Covid infections, according to the CDC.
The agency notes the increase in hospitalizations is driven by XBB lineages of the virus, not the newly identified pirola variant. As of Aug. 30, pirola is associated with two dozen sequenced cases worldwide. At that time, it was most prevalent in Denmark with 10 cases.
"Identification of these cases in multiple countries is evidence of international spread," the CDC said. Covid caused by pirola doesn't appear more severe than previous iterations of the virus.
Shares Slip Below 50-Day Line
News of increasing Covid hospitalizations previously spiked Moderna stock, but shares have since slipped back below their 50-day moving average, according to MarketSmith.com.
Moderna President Stephen Hoge says the company's study suggests the updated booster shot will be "an important tool for protection as we head into the fall vaccination season." Moderna, partners Pfizer and BioNTech, and Novavax all plan to launch updated booster shots this fall.
But Moderna stock remains under pressure. Shares have a low IBD Digital Relative Strength Rating of 15, putting their 12-month performance in the lowest 15% of all stocks.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
