MRNA Stock Jumps on CDC's Revised RSV Vaccine Recommendations

Shares of Moderna MRNA rose nearly 6% yesterday after the U.S. Centers for Disease Control and Prevention (“CDC”) adopted new recommendations for the use of RSV vaccines in the upcoming respiratory virus season.

The revised recommendations lower the recommended age for RSV vaccination. Now, adults aged 50-59 who are at higher risk of severe illness from the disease are advised to receive a single dose of the vaccine. The previous CDC guidance recommended RSV vaccines for people aged 75 and older, as well as those aged between 60-74 who were at high risk of the disease.

Per the CDC’s website, this recommendation was officially adopted last week by the current HHS secretary, Robert F. Kennedy, Jr. Although the CDC director typically accepts or rejects such recommendations, the position is currently vacant, so Kennedy fulfilled that role. President Trump has backed Susan Monarez as his nominee for the post, but her appointment is still pending confirmation by the U.S. Senate.

The broader recommendations come as a surprise because the members of the CDC’s advisory committee — who initially made the recommendation earlier this year — were all removed by RFK Jr. last month.

MRNA Stock Price Performance

Year to date, the stock has lost 27% compared with the industry’s 2% decline.

How Does the Revised CDC Guidance Benefit Moderna?

The expanded CDC recommendations widen Moderna’s addressable market for its RSV vaccine, mResvia. By lowering the recommended age group, the guidance opens up a new segment of eligible patients who were previously excluded.

Moderna is one of a handful of companies marketing an RSV vaccine. Though mResvia was initially approved last year for use in people aged 60 and older, the FDA expanded its label last month to include high-risk individuals aged between 18-59.

Despite commercially launching the vaccine last year, mResvia sales were modest as it was approved and recommended later in the contracting season. By that point, many people had already completed their vaccinations with either GSK’s GSK Arexvy or Pfizer’s PFE Abrysvo.

RSV vaccines gained traction in 2023 with the initial approvals of Arexvy and Abrysvo — the first FDA-approved RSV vaccines. At the time, the CDC issued blanket approvals for use among individuals aged 60 and older. However, the CDC later narrowed that guidance, which trimmed the target market last year. That, combined with the earlier availability of GSK and Pfizer’s offerings, gave both companies a dominant position over Moderna.

Both GSK and Pfizer vaccines are already approved for use in individuals aged 60 and older. While GSK’s Arexvy is approved for use in high-risk individuals aged 50-59, PFE’s Abrysvo is approved for use in high-risk people aged 18-59. The Pfizer vaccine is also approved for use in infants through maternal immunization.

Moderna, Inc. Price

 

Moderna, Inc. price | Moderna, Inc. Quote

MRNA’s Zacks Rank

Moderna currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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