Introduction

Wall Street showed mixed performance on Tuesday as the healthcare sector’s growth prospects looked dim. However, Moderna Inc. shares gained a respectable amount after it announced an agreement related to its Covid-19 vaccine.

Healthcare Sector: A Tale of Mixed Performance

Healthcare companies had a mostly stagnant performance on Tuesday, with shares declining and gaining in an uneven manner. Some of the giants in the industry made slow but positive progresses, while others treated investors to a proverbial roller-coaster ride. Johnson & Johnson, a big pharmaceutical giant, registered a gain of 0.2%, while Pfizer saw it shares slip by 0.8%. Earnings reports from the last quarter had a mixed performance.

Moderna Shares Shine Bright

Despite the sector’s tepid performance, shares of Moderna Inc., a Massachusetts-based biotechnology company, rose by as much as 10%. This surge was largely credited to the company’s agreement with Fosun Pharma, a privately held Chinese pharmaceutical company. The two parties have signed a non-binding memorandum of understanding which, if finalized, will cover the distribution and sale of Moderna’s Covid-19 vaccine in mainland China.

Conclusion

The healthcare sector’s future looked uncertain on Tuesday, with stocks going up and down at an unpredictable rate. But the share price of Moderna Inc. had an impressive surge after the company announced its agreement with Fosun Pharma for distribution of its Covid-19 vaccine in mainland China.

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