Moderna and other coronavirus vaccine makers to accept reduced payments if approval milestones are not met

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And Modern (NASDAQ: ARNM) and his peers are taking too long for their current coronavirus vaccine candidates to be fully developed and approved, they could pay the price. The government is asking them to achieve ambitious goals in this regard. Otherwise, they will receive reduced payments from public sector entities.

Moderna, for example, will receive $ 1.5 billion from the government if its MRNA-1273 candidate is approved for use by January 31, 2021. Otherwise, that payment will be reduced to $ 1.2 billion.

Reuters reported on Friday that similar conditions are in place for other companies busy developing and testing candidate vaccines to block the SARS-CoV-2 coronavirus and / or the disease it causes, COVID-19.

Image source: Getty Images.

He did not specify any amount or timeframe, but indicated that the large pharmaceutical company Pfizer (NYSE: PFE) admitted that he would only receive his payment from the government if his candidate BNT162b2 – developing with the German company BioNTech (NASDAQ: BNTX) – gets approval.

No coronavirus / COVID-19 vaccine candidate has yet been approved by a major national regulatory body. Moderna’s, which is currently in phase 3 clinical trials, is seen by many as the leader in getting a major regulatory green light first.

Moderna and Pfizer’s efforts are included in the government’s Operation Warp Speed ​​program, a package of financial incentives and support to get an effective vaccine to the public within months.

The possibility that Moderna would receive less for his hard work did not seem to deter investors on Friday, as they pushed up the company’s shares by nearly 2%, while the S&P 500 ticked lightly. Pfizer shares slipped almost 0.3% on the day, while BioNTech fell 3.3%.



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