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Shares of drugmaker Moderna Inc. sharply declined on Thursday following U.S. President Joe Biden’s decision to support waiving intellectual property rights for COVID-19 vaccines. This decision has been welcomed by the World Health Organization and several governments around the world, but it has faced strong criticism from the pharmaceutical industry.
On Wednesday, President Biden expressed his support for waiving these intellectual property rights, a move praised by many political leaders, global health organizations, and the head of the World Health Organization. The decision has been particularly well-received by countries experiencing severe second waves of COVID-19 and struggling with vaccine shortages.
In response, Moderna Inc. stated that waiving intellectual property rights on COVID-19 vaccines would not alleviate supply concerns. The International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) further argued that the decision might cause disruptions rather than improve access to vaccines.
As a result, Moderna’s stock has dropped by more than 8.69% at the time of writing.
The stock opened significantly lower, creating a downside gap, but it has since rebounded slightly from the support level at 143.78, marked by the highs of March 15 and April 12. However, downward pressure remains. If this support level breaks, bears may target 135.72, with additional downside targets at 129.10 and 116.73.
Conversely, if the stock continues to bounce back, it could face resistance at 156.44, with further potential targets at 170.83 and 187.52, and a possible stop around 180.00 along the way.