YEREVAN, August 19. /ARKA/. Shares of the biotechnology company Moderna surged 123.6% at the start of trading in the U.S. on August 19, reaching a peak of $140.77, according to trading data. Shares of pharmaceutical firm Merck also rose by 11.6%, to $150.85, Forbes.ru reports.
The stock prices of both companies soared after they announced successful trials of a melanoma vaccine. The experimental mRNA vaccine reduced the risk of recurrence and spread of skin cancer in combination with Merck's drug.
The study involved over 1,100 patients with high-risk or advanced melanoma, whose cancer cells were surgically removed. This is the first instance where an mRNA cancer vaccine has shown positive results in late-stage trials, Reuters writes.
Intermediate results of the mRNA vaccine study create favorable conditions for Moderna and Merck to obtain regulatory approval, noted William Blair analyst Miles Minter. He also stated that this is a positive signal for ongoing research into the vaccine's efficacy against other types of oncology. The companies expect to begin negotiations with regulators in the coming months, said Dean Li, head of Merck's research division, in an interview with CNBC.
The trial results are likely to alleviate investors' concerns about the long-term growth prospects of both companies, Reuters writes. Moderna is seeking new growth drivers following its coronavirus vaccine, while Merck anticipates losing patent protection on Keytruda by the end of this decade.
Nubar Afeyan is the co-founder and chairman of the board of Moderna. The company was established in 2010 under the venture firm Flagship Pioneering, founded and led by Afeyan. Flagship was involved in shaping Moderna's scientific concept, its launch, and initial funding.
However, Afeyan does not manage the day-to-day operations of Moderna; the company's CEO is Stéphane Bancel. Afeyan's role is primarily related to strategic management and board activities.
