Moderna shares soar 159% in a day after cancer vaccine succeeds in late-stage trial
The stock was later trading at $143.51 later in the day. It had closing the previous session at $62.96.
Interim results from the ongoing study showed that the treatment, Intismeran, met its primary goal of reducing cancer recurrence and its secondary objective of preventing tumours from spreading to other parts of the body, compared with Keytruda alone, Reuters reported.
The results mark the first successful late-stage trial of an mRNA cancer vaccine. It is also the first study to show that adding another treatment to Keytruda worked better than Keytruda alone in patients whose melanoma had been surgically removed.
Merck shares gained 11% to $150.14 in early trading.
The findings could help ease investor concerns about the companies’ long-term growth prospects. Moderna has been seeking growth beyond its COVID-19 vaccine, while Merck is preparing for Keytruda, its blockbuster cancer therapy, to lose patent protection later this decade, according to the Reuters report.
William Blair analyst Myles Minter said the interim results put both companies in a strong position to seek regulatory approval. He added that the findings were also encouraging for ongoing studies of the vaccine in other types of cancer.Merck research and development chief Dean Li told CNBC that the companies expected to begin discussions with regulators within the next few months.
Barclays analysts estimated last month that the therapy could generate about $3 billion in melanoma-related sales by 2035.
Pricing remains undecided
JP Morgan analysts told Reuters the launch of Intismeran as an adjuvant treatment for melanoma would be crucial to Moderna’s return to profitability.
The therapy combines Merck’s Keytruda with a made-to-order Moderna mRNA vaccine designed using an analysis of mutations found in each patient’s tumour.
The trial enrolled 1,137 high-risk patients with stage IIB to stage IV melanoma that had been surgically removed. Participants were randomly assigned to receive up to nine doses of the personalised vaccine alongside Keytruda, or Keytruda alone, for about one year.
The companies said no new safety concerns had emerged during the trial.
In January, they released five-year results from a mid-stage study showing that the combination reduced the risk of cancer recurrence or death by 49%.
Moderna CEO Stéphane Bancel said the companies had not yet decided on a price for the treatment because the latest data had become available only a few days earlier.
Unlike some personalised cell therapies, the treatment does not use a patient’s own cells, which could allow the manufacturing process to be scaled up and costs to be reduced, Bancel said.
Melanoma is the deadliest form of skin cancer. More than 1.5 million people in the United States were living with the disease in 2023, according to the National Cancer Institute
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
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