Moderna's stock price experienced a substantial increase, with shares surging by as much as $91.52, or 145%, to reach $154.48 in morning trading, and even touching an intraday high of $163. This surge was in response to the positive results of a late-stage clinical trial for its personalized mRNA cancer therapy, developed in partnership with Merck. The therapy, Intismeran, when combined with Merck's Keytruda, met its primary and secondary goals by reducing the risk of melanoma recurrence and preventing the spread of tumors in patients whose melanoma had been surgically removed.
The trial results are particularly significant as they represent the first positive late-stage outcome for an mRNA cancer vaccine and the first study to demonstrate that adding a treatment to Keytruda was more effective than Keytruda alone in this patient group. This success eases investor concerns about Moderna's growth beyond its COVID-19 vaccine and helps Merck as it faces the looming patent expiration of Keytruda. Analysts like Myles Minter from William Blair view these interim results as a strong step towards regulatory approval and positive for the vaccine's ongoing studies in other cancer types.
The therapy involved 1,137 high-risk patients with stage IIB-IV melanoma, who received either Keytruda plus the personalized mRNA vaccine or Keytruda alone for approximately one year. The companies reported no new safety signals. Earlier mid-stage trial data showed the treatment reduced the risk of recurrence or death by 49% after five years. The personalized nature of the vaccine, tailored to each patient's tumor mutations, was highlighted by Moderna CEO Stephane Bancel as a significant step towards a long-aspirational vision in cancer treatment.
While no pricing decisions have been made, J.P. Morgan analysts anticipate that the launch of Intismeran in adjuvant melanoma will be crucial for Moderna to return to profitability. Barclays analysts project the therapy could generate around $3 billion for melanoma treatment by 2035. Merck's shares also saw a significant boost, climbing by $14.35, or 10.6%, to $149.52, reflecting the positive outlook for both companies.
