By Paul R. La Monica, CNN Business

Moderna, the biotech that became a household name with its Covid-19 vaccine, is getting the ultimate Wall Street validation: It’s being added to the S&P 500 index.

S&P made the announcement late Thursday, and shares of Moderna surged 10% Friday morning on the news. The stock is now up nearly 175% this year, giving Moderna a market valuation of more than $100 billion.

Moderna’s addition to the S&P 500 means that the scores of passively managed mutual funds and exchange-traded funds that mirror the S&P 500 will need to add the company’s stock to their portfolios. That’s a key reason that the stock was popping Friday.

Moderna will take the place of drug maker Alexion Pharmaceuticals, which is in the process of being acquired by Big Pharma giant AstraZeneca.

S&P said the index change will take effect before the market opens next Wednesday.

Moderna makes one of the three coronavirus vaccines that is approved by the United States Food and Drug Administration. Pfizer and BioNTech also make a two-dose vaccine similar to Moderna’s, while Johnson & Johnson offers a single-dose Covid shot.

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