Shares of drugmaker Moderna Inc, fell steeply on Thursday after U.S. President Joe Biden decided against coronavirus vaccine makers owning sole intellectual property rights to their vaccines. This move has pleased the WHO and several governments worldwide but has received severe criticism from the pharmaceutical industry.
U.S. President Joe Biden on Wednesday lent his support on waiving intellectual property rights for COVID-19 vaccines. Several political figures, global health organizations and the head of the World Health Organization hailed the move, with most of the commendations from countries facing severe COVID-19 second waves but heavily short of vaccine supplies.
Moderna Inc has responded to the U.S. President’s position, saying that waiving intellectual property rights on COVID-19 vaccines would not ease supply concerns. The International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) has gone further to say that the decision would cause disruption rather than enhancing access.
Moderna Inc is down more than 8.69% as of the time of writing.
Technical Outlook for Moderna
Moderna’s stock has opened steeply lower and with a downside gap. However, the price has bounced off the support at 143.78 (15 March/12 April highs), but downward pressure persists. A breakdown of this support level allows bears to aim for 135.72, with 129.10 and 116.73 serving as additional downside targets.
On the other hand, an extension of the bounce to the north challenges resistance at 156.44. Additional targets are found at 170.83 and 187.52, with 180.00 lining up as a potential pitstop along the way.