Funding for Moderna’s Covid-19 Vaccine Breakthrough

Supporters include funds from Baillie Gifford, AXA Framlington and Schroders Moderna (MRNA.O), the US biotech company that made a breakthrough in Covid-19 vaccines yesterday, and its shares have increased 400% this year.

Moderna shares rose 9.6% yesterday after the company reported that his vaccine was 94.5% effective With Covid-19 prevention, stock markets are getting a second dose within a week with far better vaccine news than expected. Pfizer (PFE.N) last week announced the vaccine it had developed with a German partner BioNTech (BNTX.O) was 90% effective.

Moderna’s surge yesterday resulted in its stock rally rising to 400% year-to-date, strengthening the small group of UK funds with significant holdings in the company.

Baillie Gifford is the bigger winner. The Edinburgh-based fund manager is a key donor to the biotech company with a 1.03% stake that it first initiated in 2015 when the US biotech was still private. After trading at $ 23 per share in December 2018, the stock is now trading at $ 97.95.

Catherine Flockhart, director of the Edinburgh Fund Group, said Moderna holds promise of superior growth as a result of delivering solutions to “great global challenges” due to its heavy investment in research and the ability to leverage new tools such as cloud computing and machine learning.

“[Moderna] Set up a rapid response team to work non-stop on the virus and be the first to start testing a vaccine 42 days after the first sequencing of the coronavirus genome, “she said.

The stock is held by Baillie Gifford through a number of mandates including £ 1.3 billion Positive change and £ 5.6bn American Fund as well as the £ 693m Baillie Gifford US growth ((United States) Investment Trust. The asset manager’s combined stake in the company was £ 108.6 million at the end of August according to the latest Morningstar data.

The three mandates have positions of 3.1%, 1.1% and 1% respectively, making them one of the main drivers of their strong outperformance in 2020.

Linden Thomson is a newer converter that bought the shares in March. She now has a 1.7% position on her £ 495m AXA Framlington Biotech Funds.

“The Moderna vaccine appears to be marketed with normal vaccine storage and infrastructure so it can be refrigerated for 30 days,” she said. “This makes it logistically easier to store and distribute worldwide than BioNTech.”

‘However, we still believe that mass distribution will take longer than expected, likely well into the second half of 2021, so other solutions that many biotech and pharmaceutical companies are developing that can reduce the severity of Covid-19 are likely still having a place to navigate and find a solution to the pandemic. ‘

The £ 431m Schroder Global Healthcare Fund managed by Citywire A-Rated John Bowleralso has a smaller 0.6% position in Moderna.

The BB Biotech (BION.S) The investment company, which is listed in Switzerland and has a British investor, has a 6.1% stake in the company.

Surname Portfolio weight% Worth £ m
Baillie Gifford Positive change 3.1 32.3
AXA Framlington Biotech 1.7 8.5
Baillie Gifford American 1.1 58.3
Baillie Gifford US growth 0.9 6th
Schroder Global Healthcare 0.6 2.4
MI Select Managers North American Gl 0.5 3.4
Baillie Gifford administers 0.2 11.4
Baillie Gifford UK and Worldwide Gl 0.1 0.6
FP Brunel High Alpha Global Equity 0.1 3.2

Source: Morningstar

Unlike other competitors in the coronavirus vaccine race, Moderna is one of the few healthcare stocks that has held its highs in recent months.

Pharmaceutical giants AstraZeneca ((AZN) and Eli Lilly (LLY.N) Both have fallen from their summer peaks and are 11% and 7% higher since the start of the year.

Regeneron (REGN.O)After Trump Trump recovered from Covid-19 after ingesting the company’s antibody cocktail, it has increased 50% year-to-date, after increasing 78% in the first half of 2020.

Pfizer, which led to a strong global stock market rally last week after vaccine results were released far better than expected, is still down 2% year-to-date.

Funding for Moderna’s Covid-19 Vaccine Breakthrough

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