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Shares of Moderna were dropping for the fifth consecutive day on Monday, following a report that the vaccine maker was fighting a shareholder proposal demanding the company open up its Covid-19 vaccine technology and pricing to low-income countries.
Moderna (ticker: MRNA) is fighting the proposal at the Securities and Exchange Commission. The Financial Times was the first to report the news on Sunday.
The shareholder proposal was submitted by Legal & General Investment Management America, the Chicago branch of the London-based asset manager. The activist group said it wants Moderna to disclose to shareholders “whether and how Moderna’s receipt of government financial support for development and manufacture of a vaccine for Covid-19 is being, or will be, taken into account when making decisions that affect access to such products, such as setting prices.”
Moderna received nearly $2.5 billion from various government agencies, according to The New York Times.
LGIM cited concerns over Moderna’s vaccine pricing to lower-income countries, saying the company charged Botswana, Thailand, and Colombia $27 to $30 per dose, more than the price charged to high-income countries, according to the complaint.
A spokesperson for Moderna wasn’t immediately available to comment. But in a letter to the SEC, Moderna said the company already provided shareholders information about the pricing of its Covid-19 sales to the U.S. government, general pricing during the pandemic, its commitment not to enforce intellectual property rights during the pandemic, and its “global commitment to vaccine access.”
The stock was down 1% to $247.21 Monday. The stock closed at $249.99 Thursday. Since reaching its peak on Aug. 8, trading at $484.47, shares have dropped nearly 50%.
Separately, Switzerland exercised an option to buy anadditional 7 million doses of Moderna’s Covid-19 booster for delivery in the second half of next year.
Write to Sabrina Escobar at [email protected]