Moderna Stock Drops 25% After Cancer Vaccine Data Leak, Results Still Promising
Moderna shares plunged 25% following a data leak about its cancer vaccine, even as trial results showed significant promise for melanoma patients.
MADRID, Oct 23: Moderna’s shares fell as much as 25% on Thursday after a leak of preliminary data regarding its experimental cancer vaccine. The vaccine, developed with Merck, is designed to treat melanoma and showed promising results despite the stock drop.
The detailed findings indicated that the personalized vaccine, known as intismeran autogene, combined with Merck’s immunotherapy Keytruda, reduced the risk of cancer recurrence or death by 42% compared to Keytruda alone. The combination also showed a 38% reduction in the risk of cancer spreading or causing death.
According to the companies, approximately 82% of patients receiving the cancer vaccine alongside Keytruda remained without melanoma recurrence at two years, compared to 70% for those who received only Keytruda. The full results were expected to be presented at the European Society for Medical Oncology (ESMO) conference in Madrid this weekend.
While the leak raised concerns among investors, analysts viewed the overall data as strong. BMO Capital Markets analyst Evan Seigerman stated, “We assert this relative reduction in recurrence/death is clinically meaningful.” He suggested that the stock reaction could be due to inflated expectations rather than the actual efficacy of the treatment.
UBS analysts echoed this sentiment, noting that the data set was strong and provided confidence for future studies in kidney and bladder cancers. Moderna’s stock has surged over 530% this year prior to the leak, reflecting high investor expectations for the vaccine’s potential breakthrough.
Merck’s stock also experienced a drop of about 1% on Thursday but has increased nearly 41% this year. The personalized nature of the vaccine means a complex manufacturing process, which currently takes about six weeks. Merck CEO Robert Davis mentioned that the company aims to shorten this timeline to enhance patient access.
