24H | Moderna Plunges 9% as CEO Announces Curb on Vaccine Trial Investments Due to US Backlash

Stock Track01-23 10:05

Moderna experienced a significant plunge of 8.6% in overnight trading. The decline reflects a shift in investor sentiment following concerning news about the company's future investment strategy.

The drop comes after Moderna's Chief Executive Stephane Bancel stated in an interview with Bloomberg TV that the company does not plan to invest in new late-stage vaccine trials. Bancel cited growing opposition to immunizations from U.S. officials as the primary reason, emphasizing that "you cannot make a return on investment if you don't have access to the US market." This announcement signals potential headwinds for Moderna's traditional vaccine business segment.

Market analysts view this development as particularly significant given the company's recent reliance on its oncology pipeline for growth, as its core respiratory vaccine business faces challenges. The CEO's comments at the World Economic Forum in Davos suggest regulatory delays and reduced government support are constraining the vaccine market size, impacting Moderna's long-term strategic planning.

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