The shares of Moderna are rallying today after news emerged that the company would be included in the S&P 500, replacing Alexion Pharmaceuticals, which is being acquired by AstraZeneca (AZN).
Moderna To Enter The S&P 500
Biotech company Moderna is already popular throughout the globe after playing a key role in developing the Coronavirus vaccine. The company is set to get even more popular after it was announced that it would be included in the S&P 500 index.
Moderna is set to replace drugmaker Alexion Pharmaceuticals, which is expected to be acquired by Big Pharma giant AstraZeneca soon. S&P 500 said the changes would come into effect before the market opens by next Wednesday
The biotech company manufactures one of the three Covid-19 vaccines approved by the United States Food and Drug Administration (FDA). It is joined by Pfizer (PFE) and BioNTech (BNTX), who manufacturer a two-dose vaccine similar to Moderna’s. Meanwhile, Johnson & Johnson (JNJ) offers a single-dose Covid shot.
Moderna’s Shares Are Rallying
The shares of Moderna have been rallying since the news broke that it would be joining the S&P 500. At the time of this writing, Moderna (MRNA) is up by 8% at Friday’s trading session and could soar higher over the coming hours.
Year-to-date, Moderna’s stock price has gone up by nearly 175%, with the company now having a valuation of over $100 billion. Its addition to the S&P 500 means will see a wide range of passively managed funds and exchange-traded funds (ETFs) that reflect the performance of the S&P 500 add the Moderna stock to its portfolio. This would increase the company’s exposure and allow more institutional investors to access it. This is the key reason why the stock has been performing excellently today.
With more vaccines needed globally to fight the pandemic, Moderna’s stock price could experience further gains over the coming months.