Moderna cancer vaccine cuts melanoma risk in breakthrough trial, shares surge 160%

Moderna said Wednesday that its personalized mRNA cancer vaccine lowered the risk of melanoma returning or spreading in a late-stage trial. 

The positive results were a major breakthrough for this new type of cancer treatment and caused Moderna’s shares to rise as much as 160%.

The backstory:

Moderna developed the vaccine with Merck and tested it together with Keytruda, a common immunotherapy treatment for melanoma. 

If regulators approve the vaccine, thousands of patients who have had high-risk melanoma tumors removed could benefit from it as soon as next year, Moderna President Stephen Hoge said.

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Dig deeper:

This is the first successful late-stage trial for an mRNA cancer vaccine. The vaccine works by training a patient’s immune system to recognize and attack specific mutations in cancer cells. It is also the first study to show that adding another treatment to Keytruda worked better than Keytruda alone. Similar vaccines are being studied for lung, breast and pancreatic cancers.

What they're saying:

Karen Knudsen, CEO of the Parker Institute for Cancer Immunotherapy, said Moderna’s results could mark the beginning of a new stage in treating solid tumors.

"The positive hit here leads us into truly this next phase in immunotherapy," Knudsen said. "This is an auspicious start — this is where things begin."

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Big picture view:

The results were also an important win for Moderna, which has struggled to develop successful products beyond its COVID-19 vaccine. The company has also faced criticism of mRNA technology from President Donald Trump’s administration. Moderna’s shares reached multiyear highs, adding nearly $40 billion to the company’s value. Merck’s shares rose 11% as investors hoped the vaccine could strengthen its cancer business as Keytruda approaches patent expiration later this decade.

The results also increased investor interest in biotech companies. The Nasdaq Biotechnology Index rose 4.4% to a record high, compared with a 0.4% increase in the S&P 500.

Because the vaccine is personalized for each patient, it could be difficult to produce on a large scale. However, Hoge said Moderna is confident it can meet demand over the next few years.

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By the numbers:

Moderna CEO Stephane Bancel said on CNBC that the companies have not decided how much the treatment will cost because the latest data became available only "a couple days ago."

Melanoma is the deadliest type of skin cancer. According to the National Cancer Institute, more than 1.5 million people in the U.S. were living with melanoma in 2023.