Moderna’s stock price soared 177% on August 19 after the company reported positive results from a late-stage clinical trial of an experimental melanoma treatment developed in partnership with Merck. The drug, mRNA-4157/V940, is a personalized cancer vaccine designed to reduce the risk of melanoma recurrence when combined with Merck’s immunotherapy drug Keytruda.
The trial results were announced in a press release by Moderna, which described the findings as a “pivotal moment” for cancer research. The company’s CEO, Stéphane Bancel, stated that the trial represents progress toward turning the concept of patient-specific mRNA cancer treatments into a clinical reality. Moderna’s shares closed at $174.38, up from $63.00 the previous day, adding approximately $30 billion to the company’s market capitalization.
The surge in Moderna’s stock contributed to broader market gains on the day. The Nasdaq biotech index rose 4.4%, reaching a record high, while Merck’s shares climbed 10%, also hitting an all-time peak. Trading volume for Moderna was more than 15 times the 50-day average, according to LSEG data. The positive momentum extended Moderna’s year-to-date gain to 445%, though the company’s shares remain down roughly two-thirds from their August 2021 peak of $484.
The experimental therapy, mRNA-4157/V940, is designed to train the immune system to recognize and attack cancer cells specific to an individual patient. In the late-stage trial, the combination of the vaccine and Keytruda reduced the risk of melanoma recurrence or death compared to Keytruda alone. Analysts noted that the trial results could serve as a catalyst for Moderna’s efforts to diversify beyond its COVID-19 vaccine business, which drove its initial surge in valuation during the pandemic.
Moderna has been expanding its pipeline to include vaccines for influenza, norovirus, and Lyme disease, in addition to its cancer immunotherapy program. The company’s leadership has emphasized that the melanoma trial is part of a broader strategy to demonstrate the versatility of mRNA technology beyond infectious diseases. Investors and analysts are now assessing the potential commercial opportunity of the treatment, with some suggesting that an effective cancer vaccine could be highly profitable if approved and widely adopted.
The trial results follow a challenging period for Moderna, which has faced declining revenue and investor skepticism since its peak during the COVID-19 pandemic. The company’s shift toward cancer and other therapeutic areas aims to establish a more sustainable revenue base. While the latest data is promising, further regulatory review and additional clinical trials will be required before the vaccine can be submitted for approval by health authorities such as the U.S. Food and Drug Administration (FDA).