Moderna Inc. is joining the S&P 500 index effective prior to the market open tomorrow, July 21, 2021. The stock, which has soared amid the COVID-19 pandemic, is replacing Alexion Pharmaceuticals Inc. U.K drug maker AstraZeneca’s roughly $39 billion deal for Alexion is set to close on the same day.
The S&P 500 index includes the 500 largest companies that trade on U.S. stock exchanges. So far in2021, 10 stocks have been added to the index as a result of acquisitions, spinoffs and market-cap changes.
Shares of Moderna jumped over 10% on Friday to $286.43, after soaring nearly 150% year to date already. The skyrocketing success began in December, when it’s vaccine was granted emergency use authorization in the United States, just a week behind the first approval for Pfizer Inc. and BioNTech SE’s vaccine.
Earlier this week, Moderna’s market valuation surpassed $100 billion, putting it in an elite group of biotech firms of that size.
Michael Yee, Managing Director and Senior Research Analyst at Jefferies, says the stock is viewed as the “Tesla of Biotech.” It’s an innovator, breaking new ground in messenger-RNA.
Yee went on to say, “Think about how fast they came up with nothing a year ago, and all of a sudden, they’re doing $21 billion and have injected hundreds and hundreds and hundreds of millions of people with their drug safely. It’s a pretty big accomplishment.”
We will keep our eyes on the Cambridge, Massachusetts-based biotech company as it enters the S&P 500 on Wednesday. Keep an eye on our weekly market recaps to stay updated.
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