Moderna plans to issue $ 1.25 billion in equity after 20% increase in stocks

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

David L. Ryan | The Boston Globe via Getty Images

Biotech company Moderna, which tests one of the main candidates for the coronavirus vaccine, plans to release at least $ 1.25 billion in fresh stocks after the publication of the results of its phase 1 trial, announced Monday the society.

The announcement comes after Moderna reported positive data on its early-stage human trial for a Covid-19 vaccine on Monday. The tightly monitored vaccine trial produced Covid-19 antibodies in the 45 participants, boosting the company’s shares by almost 20%.

Moderna said it expects to use the proceeds mainly to finance the manufacturing and distribution of its candidate vaccine, mRNA-1273, once it has been approved by federal regulators. Morgan Stanley is responsible for the transaction. Moderna offers the underwriters a 30-day option to purchase up to an additional $ 187.5 million in common shares.

If there is any product left, the company hopes to “fund clinical development and drug discovery in existing and new therapeutic areas; finance the future development of its mRNA technological platform and the creation of new methods; or finance working capital and other general business purposes. “

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