Moderna shares soared 177 per cent in trading on Wall Street after a successful trial showed its experimental skin cancer jab stopped melanoma from spreading.
Shares in US pharmaceutical company Merck climbed 13 per cent following the announcement of the results from the joint late-stage study.
The experimental vaccine, developed jointly by Moderna and Merck, stopped melanoma from spreading to other parts of the body while also preventing the disease from returning. The treatment uses messenger RNA technology, the same biochemical mechanism behind both the Pfizer and Moderna Covid-19 vaccines.
Messenger RNA technology is designed to teach the human immune system to target cancer tumours and other illnesses. By training immune cells to identify and destroy affected cells, the treatment makes the body more effective at combating tumours so the disease is less likely to return. Melanoma is a serious form of skin cancer that originates in pigment-producing cells.
Trial findings and expert reactions
"These findings are a pivotal moment for cancer research," said Stéphane Bancel, chief executive of Moderna. "For years, the idea of creating an mRNA treatment designed specifically for an individual patient's cancer was aspirational. We are helping turn that vision into a reality."
Professor Georgina Long, the study's lead investigator and medical director of Melanoma Institute Australia, hailed the results as a "landmark moment" for melanoma treatment. She added that the experimental jab had the potential to help patients "remain cancer-free for longer." Melanoma Institute Australia is a non-profit medical research institute based in Sydney.
Market analysis and investor caution
Moderna and Merck announced that the detailed results of the trial would be unveiled at a medical conference later this year.
Lale Akoner, global market strategist at retail investment platform eToro, noted that the trial success provides a significant boost for investors. "Moderna and Merck's melanoma vaccine success is a major confidence boost for investors, particularly for Moderna, which has been searching for its next growth engine after the Covid boom faded," Akoner said.
However, Akoner advised investors to keep expectations measured despite the encouraging trial outcome. "The companies have not yet released the full trial data, overall survival results are still pending, and manufacturing personalised vaccines at scale could be expensive and complex," she added.
Financial background and corporate recovery
Moderna shot to global prominence during the coronavirus pandemic when it successfully developed and deployed an mRNA Covid-19 vaccine. Despite becoming a household name during the crisis, the Cambridge, Massachusetts-based biotechnology firm has struggled in recent years as global demand for Covid-19 immunisations has declined, driving its share price down from record highs established in 2021.
At its peak in September 2021, Moderna was valued at nearly £150 billion. Today, even after the massive share price rally triggered by the skin cancer trial results, the company's valuation stands closer to £40 billion.
The firm has pinned its long-term financial recovery on cancer vaccines, with these latest clinical results representing the culmination of years of dedicated research and clinical development.
