Why are Moderna shares growing

Shares of Moderna Inc. jumped 11.7% on Tuesday and added another 2.3% on Wednesday following news of the first reported human death linked to the circulating H5N1 strain.

Key growth factors:

• Concerns about H5N1. Despite assurances from the Centers for Disease Control and Prevention (CDC) about the low risk of transmission of the virus among humans, increased attention to avian flu has increased interest in vaccine developers.

• The increase in respiratory infections. The CDC records an increase in cases of influenza, COVID-19 and RSV based on wastewater analysis.

Moderna, known for its COVID-19 vaccine, is actively developing new products and has already received $176 million from the U.S. Department of Health to develop a vaccine against H5N1 avian influenza. In addition, the pharmaceutical company has introduced a vaccine against RSV, although its market share remains small.

Analysts note that the main driver of the stock's growth was the avian flu. They also stressed that the growth of other respiratory infections is unlikely to be significant for Moderna, as MResvia has a very low market share in RSV, so increased attention/vaccination is unlikely to be significant.