Moderna To Raise $1.3B In A Public Offering As Coronavirus Vaccine Trials See Progress

Moderna Inc. (NASDAQ: MRNA) announced Monday it is planning to raise more than $1.3 billion in a secondary public offering.

What Happened

The biotechnology company said it is offering 17.6 million common shares priced at $76 each. Underwriters will have an option to purchase an additional 2.64 million shares within 30 days of the closing of the sale.

Morgan Stanley (NYSE: MS) is serving as the sole book-running manager for the offering, which is expected to close on or around May 21, according to Moderna.

The biotechnology company said in a statement it will use the proceeds to fund "working capital needs" related to its novel coronavirus (COVID-19) vaccine candidate, once it has received regulatory approval.

Moderna noted that any remaining funds will be used 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."

Why It Matters

The company's COVID-19 vaccine, mRNA-1273, is one of the lead candidates for accelerated approval by the United States authorities.

Moderna shared positive interim data from phase one of its clinical trials and suggested it could move to phase three trials as soon as July.

One of the company's board members, Moncef Slaoui, was selected by President Donald Trump last week to lead the federal efforts to accelerate the development of a coronavirus vaccine.

Slaoui has since resigned from Moderna's board and said he'll sell his stake in the company to avoid conflict of interests.

Price Action

Moderna shares closed nearly 20% higher at $80 on Monday. The shares traded 2.6% lower at $77.90 in the after-hours session.