Moderna CEO says it will take months to clear a new Covid vaccine targeting omicron

Moderna CEO Stephane Bancel on Monday said it will take months to develop and ship a vaccine that specifically targets the omicron variant of the virus that causes Covid-19.

However, a higher 100-microgram dose of the company’s booster shot could be ready much sooner.

“The higher dose could be done right away but it will be months before the omicron specific variant is ready to ship in massive quantities,” Bancel told CNBC’s “Squawk Box.”

Bancel said Moderna believes the omicron variant is highly infectious, but it will take at least two weeks determine how much the mutations have impacted the efficacy of the vaccines currently on the market.

“Depending on how much it dropped, we might decide on the one hand to give a higher dose of the current vaccine around the world to protect people, maybe people at very high risk, the immunocomprised, and the elderly should need a fourth dose” he said.

The World Health Organization, in a technical paper published Sunday, said omicron has more than 30 mutations on the spike protein that binds to human cells. These mutations are associated with higher transmission and potentially reduced antibody protection, according to the paper.

Omicron was first identified in South Africa’s Gauteng province where Johannesburg is located. Bancel warned that the variant is spreading globally already. He pointed to flights that arrived in AmAmsterdam from South Africa on Friday in which 61 of 624 passengers tested positive for Covid. At least 13 of them are infected with the omicron strain as health authorities continue to sequence the samples, according to the Dutch National Institute for Public Health.

“We also believe it is already present in most countries,” Bancel said. “I believe most countries that have direct flights from South Africa in the last seven to 10 days already have cases in their country that they may not be aware of.”

The U.S. has banned entry to non-citizens who have traveled in South Africa and seven other nations in the region in the past 14 days. The United Kingdom and the European Union have implemented similar travel restrictions.

The variant has spooked global markets, with the Dow Jones Industrial Average dropping 905 points on Friday or 2.53%, it’s worst day of the year.

This is a developing story. Please check back for updates.