Moderna shares made a considerable jump on Wednesday after the company and Merck announced positive results from their personalised mRNA cancer treatment. The stock went up more than 110% in early trading, putting it on track for its biggest-ever one-day gain.
The trial marks a major milestone for Moderna as it looks to expand its business in India. It is also being seen as a breakthrough for mRNA technology, with the study marking the first successful Phase 3 trial of an mRNA-based cancer therapy.
The Phase 3 trial tested Moderna’s personalised cancer vaccine, intismeran autogene, in combination with Merck’s blockbuster cancer drug Keytruda. The treatment was studied on 1,137 patients with high-risk melanoma whose tumours had been surgically removed.
The main goal of the exercise was met as recurrence-free survival was improved. This means patients receiving the treatment went longer before their cancer returned. It also achieved a secondary goal linked to reducing the risk of the cancer spreading to other parts of the body.
About the safety concerns, companies said there was nothing of the sort identified in the trial. Detailed results are expected to be presented at a medical conference later this year.
How does Moderna’s cancer vaccine work?
Unlike traditional vaccines, the treatment is designed specifically around the mutations found in an individual patient’s tumour. The patient’s tumour is analysed to identify mutations that can be targeted by the immune system. Moderna’s mRNA technology is then used to create a personalised treatment designed to train the immune system to recognise and attack cancer cells. The process is intended to be completed in roughly six weeks.
Why is this important for Moderna?
The result could prove to be massive for Moderna, which has been making an effort to reduce its dependence on Covid-19 vaccine revenue. The company has been investing heavily in areas including cancer, respiratory diseases and other vaccines. A successful cancer therapy could give Moderna a major new revenue source and strengthen its position in the rapidly growing oncology market.
The announcement lifted Merck shares as well. The pharmaceutical giant’s stock rose more than 6% in premarket trading after the results were announced. Other biotechnology stocks, including BioNTech and Novavax, also gained as investors reacted to the potential of mRNA-based cancer treatments.
For Moderna, however, the reaction was much more dramatic. Its shares had risen more than 100% at one point in premarket trading before settling around an 85% gain in early trading, according to Forbes.
Notably, the results do not mean Moderna has developed a cure for cancer. Instead, they represent an important step towards personalised cancer treatment and provide the strongest late-stage evidence yet that mRNA technology could have applications far beyond infectious-disease vaccines.
