Key facts
- Moderna's stock price surged significantly on Wednesday.
- The surge followed positive Phase 3 trial results for an mRNA cancer vaccine.
- The vaccine is being developed in partnership with Merck and is combined with their drug Keytruda.
- The treatment aims to prevent the recurrence or spread of melanoma after surgical removal of tumors.
- The stock's gain on Wednesday was its largest-ever one-day increase.
Moderna's stock price experienced a dramatic surge, climbing as much as 177% to $174.38 on Wednesday. This significant increase followed the announcement of successful late-stage Phase 3 trial results for its mRNA cancer vaccine, developed in collaboration with Merck and administered alongside Merck's immunotherapy drug, Keytruda. The treatment is designed to reduce the recurrence of melanoma, a serious form of skin cancer, in patients whose tumors have been surgically removed.
This breakthrough marks a potential turning point for Moderna, which saw its fortunes decline after the peak demand for its COVID-19 vaccines waned. The company has been seeking a new growth engine as a major drug developer. The successful trial results represent a "pivotal moment for the field of cancer research," according to Moderna CEO Stéphane Bancel, turning the aspiration of personalized mRNA cancer treatments into a potential reality.
Despite Wednesday's substantial gain, Moderna's shares remain significantly below their peak of $484 reached in August 2021. However, the surge has boosted the company's year-to-date performance to 445%, indicating a positive trajectory for the biotech firm.