Moderna shares surged nearly 90 percent in pre-market trading after its personalized mRNA cancer therapy co-developed with Merck & Co. successfully passed a key late-stage clinical trial, Reuters reported.
Shares in Moderna reached $118.61 during the early trading session, while Merck stock gained 7.5 percent. Moderna also emerged as the most popular ticker among retail investors on the Stocktwits platform.
Interim trial results released on August 19 showed that the experimental drug Intismeran, administered alongside Merck's Keytruda, reached its primary objective of reducing melanoma recurrence. The combination therapy also met its secondary endpoint by preventing the disease from spreading to other organs compared to treatment using Keytruda alone.
The study represents the first positive result from a late-stage clinical trial for an mRNA cancer vaccine. It is also the first study demonstrating that adding such a drug to Keytruda is more effective than using Keytruda alone in patients whose melanoma was surgically removed.
Market prospects and regulatory plans
The positive trial results are expected to strengthen prospects for both pharmaceutical companies. Moderna has been seeking new sources of growth following a decline in global demand for its COVID-19 vaccine, while Merck is preparing for the expiration of patent protection for Keytruda at the end of this decade.
Merck expects to begin negotiations with health regulators regarding the therapy within the next few months. Financial analysts at Barclays estimate that the treatment could generate around $3 billion annually from melanoma care by 2035.
Moderna is an American biotechnology company known for developing messenger RNA therapies, which instruct cells to produce specific proteins to trigger an immune response. Merck & Co. is a US-based pharmaceutical company that manufactures Keytruda, an immunotherapy drug designed to help the immune system identify and fight cancer cells.
Pricing decisions and manufacturing
Speaking on CNBC, Moderna Chief Executive Officer Stephane Bancel said the companies had not yet decided on pricing for the treatment because trial data became available only a few days ago.
Bancel said that, unlike certain personalized cell therapy methods, this treatment does not use patients' own cells. He noted that this distinction could allow the manufacturing process to scale up and lower costs.
The companies previously reported results from a mid-stage trial in January, showing that after five years, the therapy reduced the risk of cancer recurrence or death by 49 percent.
Impact of skin cancer
Melanoma is a deadly form of skin cancer that originates in pigment-producing cells. According to data from the National Cancer Institute, more than 1.5 million people in the United States were living with melanoma in 2023.
