Moderna Stock Drops 2.5% Amid CDC Advisory Committee Concerns

Moderna's stock price experienced a decline of 2.5% in pre-market trading on Friday, driven by market concerns over the potential impact of a newly formed advisory committee at the U.S. Centers for Disease Control and Prevention (CDC). The committee, established to provide recommendations on vaccine usage, includes members who have publicly expressed anti-vaccine sentiments, raising questions about their support for Moderna's respiratory syncytial virus (RSV) vaccine, mRESVIA.

The RSV vaccine, mRESVIA, received U.S. approval on Thursday, expanding its use to high-risk adults aged 18 to 59. However, the CDC's recommendation is still required before it can be administered to this age group. Previously, the vaccine was approved for use in adults aged 60 and above. The formation of the new advisory committee on Wednesday has contributed to Moderna's stock decline for the second consecutive trading day.

The recent dismissal of all 17 members of the Advisory Committee on Immunization Practices (ACIP) by U.S. Health Secretary Robert F. Kennedy has added to the uncertainty. Kennedy cited the need to "rebuild public confidence in vaccine science," but health experts have warned that this move could undermine public trust in existing vaccines. The ACIP plays a crucial role in advising the CDC on which populations should receive vaccines after they have been approved by the U.S. Food and Drug Administration (FDA).

Analyst Miles Mint noted that the meeting of the RSV vaccine advisory committee is scheduled for later this month. This meeting will be the first opportunity for investors to observe how the reconstituted ACIP operates and will be critical for the market sentiment in the vaccine industry. Mint expects the industry sentiment to remain subdued.

The CDC currently recommends Moderna's vaccine for adults aged 75 and above, as well as high-risk adults aged 60 to 74. In April, the ACIP recommended the use of the approved RSV vaccine for high-risk adults aged 50 to 59, but the CDC has yet to approve this recommendation. The uncertainty surrounding the new advisory committee's stance on Moderna's RSV vaccine has contributed to the market's cautious approach.