Aug 19 (Reuters) – Moderna’s personalized mRNA cancer therapy, developed with Merck, reduced the risk of melanoma recurrence and spread when used in combination with the U.S. drugmaker’s blockbuster treatment Keytruda in a late-stage trial.
The interim results showed statistically significant improvement versus Keytruda alone, sending Moderna’s shares soaring nearly 90%. Merck gained 10%.
Here is what analysts and experts have said on the development:
DR. RYAN SULLIVAN, DIRECTOR OF CUTANEOUS MEDICAL ONCOLOGY AT MASS GENERAL BRIGHAM CANCER INSTITUTE
“It is a big deal for the field in general. If this trial was negative, the field of mRNA-based cancer therapies and cancer vaccination may never have recovered. With this positive study, there is hope (and likely investment to follow) that these approaches may change the way we treat cancer more broadly.”
PETER ANDERSEN, FOUNDER OF ANDERSEN CAPITAL MANAGEMENT IN BOSTON
“Pharma certainly has been in and out of the headlines. And of course, it’s been eclipsed by other topics such as artificial intelligence and cybersecurity. So, this will certainly drag investors’ attention more into the tent of pharmaceuticals. However, it’s a case-by-case situation.”
TRUNG HUYNH, ANALYST AT RBC CAPITAL MARKETS
“The strength of the underlying data must have been compelling to trigger significance at the interim analysis, meaningfully exceeding investor expectations. We expect a significant ‘halo effect’ across the robust program.”
GEOFFREY MEACHAM, ANALYST AT CITI
“Detailed RFS (recurrence free survival) and DMFS (distant metastasis-free survival) hazard ratios, absolute landmark rates, confidence intervals, stage-specific analyses, event timing, treatment receipt, manufacturing turnaround, and safety will determine the readout’s clinical and commercial quality.”
“Until then, today’s announcement confirms a positive trial but does not establish how far the efficacy exceeded the statistical threshold or how much value should be assigned to Intismeran and the broader oncology platform.”
ANDREW TSAI, ANALYST AT JEFFERIES
“Expect the vaccine for melanoma to enter the market in 2027… in theory, the worldwide peak sales potential in melanoma alone could be multi billion on a majority market share (before 50/50 split), especially if the partners market the product ex-U.S.”
LALE AKONER, GLOBAL MARKET STRATEGIST FOR ETORO
“Moderna and Merck’s melanoma vaccine success is a major confidence boost for investors… the sharp share-price reaction reflects that potential.”
“(but) we think that retail investors should keep expectations measured. The companies have not yet released the full trial data, overall survival results are still pending, and manufacturing personalized vaccines at scale could be expensive and complex. Investors should therefore watch for next important steps, which will be detailed clinical results, regulatory progress and evidence that the technology works across other cancers.”
ART HOGAN, CHIEF MARKET STRATEGIST AT B RILEY WEALTH IN NY
“This is great early-stage news for a company (MRNA) that has been languishing since the post-pandemic timeframe where there are fewer COVID vaccines being distributed.”
(Reporting by Mrinalika Roy and Purvi Agarwal in Bengaluru; Editing by Shilpi Majumdar)
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