Moderna, Inc. MRNA shares appear to be going from strength to strength, and the premarket price action Tuesday suggests a positive open for the fifth straight session.
What Happened: Cambridge, Massachusetts-based Moderna said Japan's Ministry of Health, Labor and Welfare and its Japanese partner Takeda Pharmaceutical Company Limited TAK have agreed to purchase an additional 50 million doses of its COVID-19 vaccine and its updated variant booster vaccine candidate, contingent on authorization for the latter.
Deliveries are set to begin in 2022, Moderna said.
The new agreement is in addition to the previous contract to supply 50 million doses in 2021.
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Moderna will assume the responsibility for manufacturing and supply, while Takeda and the Japanese government will take care of import, local regulatory, development and distribution activities in Japan.
Why It's Important: Moderna has advance purchase agreements in place for delivery of $19.2 billion in vaccine doses in 2021.
The COVID-19 vaccine is the company's first commercial product.
With several variants emerging in different parts of the world, the uptake is likely to continue to remain strong. Additionally, the shot has a potential opportunity in the endemic setting. All these bode well for Moderna.
In premarket trading, Moderna shares were up 0.61% at $315.50.
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