A late-stage trial that combined a messenger ribonucleic acid (mRNA) shot jointly developed by Moderna (NASDAQ:MRNA) and Merck with Merck's Keytruda yielded strong results in what's being viewed as a potential game-changing cancer treatment. The Phase 3 trial enrolled over 1,100 patients with melanoma whose tumors had been completely removed by surgery. This Rare Signal Is Flashing Again.
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Patients who received the personalized vaccine alongside Keytruda went longer before their cancer returned, and longer before it spread to distant parts of the body, than patients who received Keytruda alone.
Whether that means some patients are cured or simply go longer before their cancer returns isn't yet known, as Moderna and Merck have only released top-line results. "It's a big moment for medicine, a big moment for patients," Moderna CEO Stéphane Bancel told CNBC. This is the first Phase 3 trial of an mRNA cancer therapy and individualized neoantigen therapy (INT) to show better results over the sole use of Keytruda for such treatment.
There's perhaps no clearer signal of how important these results are than the fact that Moderna and Merck stocks had ripped roughly 128% and 1%, respectively, as of 12:30 p.m. It's not uncommon to see biotech stocks move sharply following a significant trial. A phase 3 trial is the final test required before a company can begin discussions with regulators about commercializing a drug.
Beyond potentially changing the reality for melanoma survivors, the new method demonstrated how a more personalized cancer treatment could be applied for other types of cancer. Jane Healy, Merck's head of oncology early development, told CNBC that the personalized approach goes after certain mutations in a tumor, teaching the immune system to attack and eliminate those mutations. Keytruda helps the body fight cancer more effectively.
Following the trial results, William Blair analyst Myles Minter upgraded Moderna stock to Outperform and said the company now has a clear path to adding new revenue sources beyond infectious disease and its COVID-19 business. Despite the strong rally, Moderna stock trades roughly 64% lower than it did in August 2021, as investors have struggled to understand what would be next for the business after the pandemic. Merck is a much larger company than Moderna, which is likely why its stock moved more modestly, albeit still a significant one for a company of its size.
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