Why the IDT (ASX:IDT) share price is rocketing 25% on Wednesday

The company claims it can make 100 million doses of mRNA vaccine within 18 months.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The IDT Australia Limited (ASX: IDT) share price is shooting 25% higher after The Sydney Morning Herald (SMH) reported the company is seeking to work with the federal government to produce mRNA vaccines in Australia.

At the time of writing, shares in the pharmaceutical company are trading for 46.5 cents each – up 25.68%.

Let's take a closer look at what's getting investors so excited.

A happy doctor in a white coat dancing due to his excitement over the EBOS acquisition

Image source: Getty Images

IDT says it can manufacture mRNA vaccines in Australia

The COVID-19 pandemic has heralded the first wide-scale use of mRNA vaccines. The leading products in this space are the inoculations jointly produced by Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX), as well as the Moderna Inc (NASDAQ: MRNA) jab.

In an effort to secure domestic supply through the production of the vector for single-strand RNA of viruses, the federal government has been in talks with the companies in a bid to secure a licence for their COVID vaccines to be made in Australia. As well as IDT, CSL Limited (ASX: CSL) is interested in the production of mRNA vaccines on our shores.

IDT says what differentiates its offer from CSL's is it will use existing manufacturing capabilities located near Melbourne's Monash University to make the product. CSL is proposing 2 new facilities for the endeavour, according to the SMH.

The prospect of IDT being awarded a lucrative government contract may be exciting investors, judging by the IDT share price rise.

"This is an established site with an established equipment train in it, which we will expand, and I think that gives us a material time advantage," IDT Chief Executive David Sparling is quoted in the SMH as saying.

"We've formed an alliance with numerous research bodies around the country, including Monash University, and that builds an ecosystem for mRNA."

Dr Sparling further went on to tell the paper his company could produce "100 million doses within 18 months."

IDT says it wants to build an mRNA research facility near its production site if it secures the licence to make the product. Dr Sparling did not reveal any financial details to the SMH.

Motley Fool Australia reached out to IDT for comment. Dr Spalding responded that the reports in the SMH are accurate and that he had nothing further to add beyond what was already in the public domain.

IDT share price snapshot

Over the past 12 months, the IDT share price has increased 141%. The company's shares faced a similar boom when IDT revealed it was in discussions with the Victorian government over a proposed mRNA vaccine plant.

IDT Australia has a market capitalisation of around $104 million.

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Moderna Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

A medical researcher rests his forehead on his fist with a dejected look on his face while sitting behind a scientific microscope with another researcher's hand on his shoulder, as if giving comfort.
Healthcare Shares

What's making healthcare the worst sector on the ASX 200, down 39% in a year?

An expert outlines the key headwinds weighing on the industry and share prices today.

Read more »

woman testing substance in laboratory dish, csl share price
Healthcare Shares

Good news, falling shares: What's dragging this ASX stock lower?

In biotech, strong updates don't always push the share price higher.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Healthcare Shares

Guess which ASX All Ords healthcare share is rocketing 18% in Thursday's sinking market

Investors are piling into the ASX healthcare share on Thursday. But why?

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Healthcare Shares

Mesoblast shares: Cash burn falls and Ryoncil® sales climb

Mesoblast reports higher Ryoncil® sales, improved cash management, and research milestones for the March 2026 quarter.

Read more »

A elder man and woman lean over their balcony with a cuppa, indicating share rpice movement for ASX retirement shares
Healthcare Shares

Regis Healthcare expects FY26 EBITDA to hit top end of guidance

Regis Healthcare expects top-end FY26 earnings as strong occupancy, RAD inflows, and efficiency gains set a positive outlook.

Read more »

A man holding a cup of coffee puts his thumb up and smiles with a laptop open.
Healthcare Shares

This ASX healthcare stock could be set to rise 50%

This small cap could be one to watch.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face.
Healthcare Shares

Up 60%: Why this exciting ASX stock could keep rising

This speculative stock could still have significant upside according to Bell Potter.

Read more »

A person holds their hands up through the middle of a rubber lifesaving ring while swimming in relatively calm conditions at a beach.
Healthcare Shares

Why this ASX healthcare high-flyer just dropped another 9% today

4DMedical shares are sliding again. Here’s what’s behind the drop.

Read more »