Moderna plans to issue $1.25 billion in fresh equity following 20% stock jump

US News

Moderna in Cambridge, MA is pictured on Feb. 28, 2020.

David L. Ryan | The Boston Globe via Getty Images

Biotech company Moderna, which is testing one of the leading coronavirus vaccine candidates, plans to issue at least $1.25 billion in fresh stock after releasing the results of its phase 1 trial, the company said Monday.  

The announcement comes after Moderna reported positive data on its early-stage human trial for a Covid-19 vaccine earlier Monday. The closely watched vaccine trial produced Covid-19 antibodies in all 45 participants, sending the company’s shares surging nearly 20%. 

Moderna said it expects to primarily use the proceeds to fund the manufacturing and distribution of its vaccine candidate, mRNA-1273 once it’s approved by federal regulators. Morgan Stanley is the running the deal. Moderna is giving the underwriters a 30-day option to buy up to an additional $187.5 million in common stock. 

If there are any remaining proceeds, the company hopes “to fund clinical development and drug discovery in existing and new therapeutic areas; to fund further development of its mRNA technology platform and the creation of new modalities; or to fund working capital and other general corporate purposes.” 

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