Jim Cramer Says Moderna Needs Money - Here's Why
Moderna was soaring in trading on Monday after the company said results from the first human trial of its experimental coronavirus vaccine were positive, and that it was set to begin a broader, phase 3 trial earlier than previously expected.
After the close, Moderna also announced plans to issue 17.6 million new shares at $76 each. The offering is expected to close on Thursday. Moderna is also giving underwriters a 30-day option to buy up to an additional 2.64 million shares in common stock.
The announcement comes following Moderna reported positive data on its early-stage human trial for a Covid-19 vaccine earlier Monday. The closely watched vaccine trial produced Covid-19 antibodies in all 45 participants.
"Moderna is a terrific company, Cramer said, and if anyone can speed through the drug discovery process, it will likely be Moderna, he said, but seeing crowded beaches and long lines outside reopening restaurants is too much, too soon," TheStreet's Scott Rutt said in his Mad Money recap.
In a previous statement, Moderna said it expects to primarily use proceeds from the offering to fund the manufacturing and distribution of its vaccine candidate, mRNA-1273 once it’s approved by federal regulators.
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