Moderna and Merck announced that their personalized mRNA cancer vaccine met its goals in a late-stage trial for melanoma. The vaccine, administered with Merck's immunotherapy drug Keytruda, significantly reduced the risk of recurrence and spread of melanoma in patients who had undergone surgery for high-risk tumors. This marks a major breakthrough in the field of cancer treatment.
The positive results led to substantial gains for both companies' stocks. Moderna's shares surged by as much as 160% (or 177% according to some reports), adding nearly $45 billion to its market value. Merck's stock also climbed over 12%. Analysts like Tyler Van Buren of TD Cowen called the results a "landmark moment," while William Blair analyst Myles Minter upgraded Moderna's stock rating and projected peak annual sales of $5.4 billion for the vaccine in melanoma alone.
This success builds on positive Phase 2 data and could mean the vaccine might be available as early as next year, pending regulatory approval. While some analysts, like Evercore ISI's Cory Kasimov and Leerink Partners' Daina Graybosch, cautioned that the market reaction might be overly optimistic and set high expectations, the results have restored Wall Street's faith in Moderna and validated the underlying mRNA technology, potentially impacting its nine other ongoing trials for different cancers.
