Moderna and Novavax extend losses after Supreme Court strikes down Biden’s vaccine mandate for private employers

Women with mask and glasses administers COVID-19 vaccine to middle-aged women with sunglasses and patterned mask
A woman in San Antonio, Texas, receives her second Moderna COVID-19 vaccine shot.
  • Novavax and Moderna shares were under pressure Friday after the Supreme Court struck down a vaccine mandate for private companies. 
  • The ruling blocked the Biden administration's vaccine-or-testing mandate at private companies with more than 100 employees. 
  • Novavax and Moderna shares closed at multi-month lows on Thursday. 

Shares of Novavax and Moderna each dropped Friday, with stock in the COVID-19 vaccine makers stretching losses into a second session after the Biden administration's vaccine-or-testing mandate for certain private companies was blocked by the Supreme Court. 

In a 6-3 ruling issued Thursday afternoon, the court's conservative majority wrote in an unsigned opinion that the administration likely didn't hold the authority to impose its policy. 

Novavax shares dropped 11.7% in premarket trade, to $99.30 and Moderna lost as much as 5.6% when it hit $198.42 ahead of the opening bell.

Novavax's stock closed Thursday's session down by 13.7% at $112.38, the lowest closing price since December 2020.  For Moderna, its 5.7% fall in the previous session to $210.17 marked the lowest close since June 2021. 

Shares of vaccine maker Pfizer were down 2% early Friday. The stock closed Thursday's session lower by 2%. 

"Although COVID-19 is a risk that occurs in many workplaces, it is not an occupational hazard in most," the court wrote.

The mandate had been put in place for private companies with a workforce of more than 100 employees. The court's liberal justices Stephen Breyer, Elena Kagan, and Sonia Sotomayor held the dissenting opinion of the majority's ruling. 

The court did allow the Biden administration's requirement for vaccines for healthcare workers at federally funded facilities to take effect.

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