Moderna Expects COVID-19 Vaccine Data in November: ETFs to Gain

The world is struggling with the aggravating coronavirus outbreak situation as the total number of cases have already crossed the grim mark of 40 million cases so far. In such a scenario, a positive comment on the coronavirus vaccine progress has come from the CEO of Moderna (NASDAQ:MRNA) during The Wall Street Journal’s annual Tech Live conference. Moderna’s CEO Stéphane Bancel has said that the interim results from the ongoing late-stage study relating to mRNA-1273 might be ready in November. If the results are positive, the federal government can grant emergency use of Moderna’s coronavirus vaccine candidate in December, according to The Wall Street Journal's report.

Meanwhile, if the interim results are not satisfactory enough, the government’s authorization of the vaccine may get extended until early next year. Per reliable sources, at least 53 candidates in the entire study will be required to have symptomatic COVID-19 for the interim analysis of the vaccine’s results. And, out of those 53 candidates, majority with symptoms should be those who received the placebo for the company to apply for government authorization.

Moderna’s Progress So Far

It is worth noting here that in July, Moderna, which is developing this vaccine in collaboration with the National Institute of Allergy and Infectious Diseases, initiated the phase III study COVE on mRNA-1273. The company enrolled 28,618 participants of the total 30,000 in the study, as of Oct 9, 2020. More than 22,194 volunteers were administered the second dose. Meanwhile, the company is on track to manufacture about 20 million doses by the end of this year and at least 500 million doses in 2021.

Moderna has also announced the receipt of confirmation from the European Medicines Agency (EMA) stating that the company is now eligible to file a marketing authorization application (MAA) for mRNA-1273 under the agency’s centralized procedure. Following the EMA’s positive response, Moderna is looking to establish a Fast-Track framework for the rapid scientific advice, rolling review and an accelerated assessment of the vaccine. The company also signed a $1.5-billion coronavirus vaccine supply agreement with the U.S. government in August.

Notably, the first company to start human clinical trials of its coronavirus vaccine candidate in the United States, Moderna, is expecting the interim results around the same time as another front-runner in the vaccine race, Pfizer (NYSE:PFE)/BioNTech (BNTX).

Moderna ETFs to Gain

The competition to come up with a vaccine is opening up near-term opportunities, making the biotech sector a prospective space for investments. Therefore, we discuss a few ETFs that provide exposure to Moderna:

ETFMG Treatments Testing and Advancements ETF GERM

This fund is designed to give direct exposure to biotech companies, directly engaged in the testing and treatment of infectious diseases. Focused on advancements with targeted exposure to the forefront of R&D, vaccines, therapies and testing technologies. It holds 63 stocks in its basket, with Moderna occupying the second spot at a 6.43% share. The fund has amassed $53.7 million in its asset base and charges 68 basis points (bps) in annual fees (read: 5 Coronavirus-Themed ETFs That Can Fight the Pandemic Scares).

Principal Healthcare Innovators Index ETF BTEC

This fund invests in companies that are leading the charge toward innovative solutions, rather than spending money on marketing and distribution by tracking the Nasdaq Healthcare Innovators Index. It holds 202 stocks in its basket, with Moderna taking the top spot at 4.74%. BTEC charges 42 bps in annual fees and has AUM of $96.7 million (read: Healthcare ETFs, Stocks That Gained Double Digits Last Week).

VanEck Vectors Biotech ETF BBH

The underlying MVIS US Listed Biotech 25 Index tracks the overall performance of companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. It holds about 25 securities in its basket, with 5.13% exposure to Moderna. Its AUM is $484.9 million and it has an expense ratio of 0.35% (read: Biotech ETFs to Shine on Coronavirus Antibodies Progress).

iShares Genomics Immunology and Healthcare ETF IDNA

The fund seeks investment results, before fees and expenses, which match the NYSE FactSet Global Genomics and Immuno Biopharma Index. It holds about 46 securities in its basket with Moderna, occupying a weight of 4.28%. It has AUM of $146.6 million and an expense ratio of 0.47% (read: Why You Should Invest in Genomics ETFs).

Other broader biotech ETFs that hold companies developing tests, vaccines and therapies for coronavirus include:

iShares Nasdaq Biotechnology ETF IBB

This fund seeks to provide exposure to U.S. biotechnology and pharmaceutical stocks and tracks the Nasdaq Biotechnology Index. It has an AUM of $8.95 billion with an expense ratio of 0.46% (read: 5 ETFs That Make Attractive Investment Choices in Q4).

SPDR S&P Biotech (NYSE:XBI) ETF XBI

The fund seeks daily investment results, before fees and expenses, which match the S&P Biotechnology Select Industry Index. It has AUM of $5.20 billion and an expense ratio of 0.35%.

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iShares Nasdaq Biotechnology ETF (IBB): ETF Research Reports

SPDR SP Biotech ETF (XBI): ETF Research Reports

VanEck Vectors Biotech ETF (BBH): ETF Research Reports

Principal Healthcare Innovators Index ETF (BTEC): ETF Research Reports

iShares Genomics Immunology and Healthcare ETF (IDNA): ETF Research Reports

ETFMG Treatments, Testing and Advancements ETF (GERM): ETF Research Reports

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