Shares of the company Moderna soared by 15 percent in early trading on Monday after it was revealed that its COVID-19 vaccine has proven to be 94.5 percent effective in trials.
The company's share price closed at $89.39 on Friday afternoon but was at $101.53 by 8am on Monday, 90 minutes before the opening bell.
Moderna's announcement comes a week after Pfizer, another American company, announced that its vaccine was 90 percent effective.
Now, officials say that between the two companies there will be enough doses to vaccinate 20million Americans by the end of this year.
Widespread vaccination, they say, is likely by the end of April 2021.
The company's share price closed at $89.39 on Friday afternoon but was at $101.53 by 8am on Monday, 90 minutes before the opening bell
Moderna announced on Monday morning that its vaccine was 94.5 percent effective
The news comes ten months after the virus was detected in the US and brings hope to billiosn around the world.
All eyes are now on how they will be distributed and whether or not the transition of power between Trump and President-elect Joe Biden will hinder the process in any way.
Trump's plan is to distribute the vaccines directly to pharmacies and private practices, without any interference from state governments.
Much of the process will hinge on how difficult it is to store and doll out the drugs.
Pfizer's vaccine comes in two doses and has to be kept at -94F. Moderna's is more simple. It can be stored at refrigerator temperatures.
Pfizer's shares skyrocketed last week after it announced the results of its efficacy study.
On Monday morning, their shares suffered marginally in pre-market trading, dipping by a little over 1 percent.
While the pharmaceutical companies' shares have benefited from the announcements along with airline shares, 'stay at home' stocks have dipped.
Netflix, Amazon and Peloton all suffered last week after the vaccine announcements which diminish the likelihood of long-term lockdowns again.
'Stay at home' stocks like Amazon and Netflix plummeted last week when Pfizer announced its vaccine breakthrough