YEREVAN, August 20. /ARKA/. Shares of the biotech company Moderna soared 123.6% at the start of trading in the US on August 19, reaching a peak of $140.77, according to trading data. Shares of the pharmaceutical company Merck also rose 11.6% to $150.85, according to Forbes.ru.
Both companies’ shares soared after they announced successful melanoma vaccine trials. The experimental mRNA vaccine reduced the risk of skin cancer recurrence and spread when combined with Merck’s drug.
The study involved more than 1,100 patients with high-risk or advanced melanoma, whose cancer cells had been surgically removed. This is the first time an mRNA cancer vaccine has shown positive results in a late-stage trial, Reuters reported
Furthermore, this is the first study to show that combining the new drug with Keytruda is more effective than Keytruda alone in patients with resected melanoma.
The interim results of the mRNA vaccine trial create a favorable environment for Moderna and Merck to secure regulatory approval, noted William Blair analyst Miles Minter. He also noted that this is a positive sign for ongoing studies of the vaccine’s effectiveness in other types of cancer. The companies expect to begin discussions with regulators in the next few months, Merck’s head of research, Dean Li, told CNBC.
The trial results are likely to ease investor concerns about the two companies’ long-term growth drivers, Reuters reported.
Moderna is seeking new growth drivers after its coronavirus vaccine, while Merck expects to lose patent protection for Keytruda at the end of this decade.
Noubar Afeyan is the co-founder and chairman of the board of directors of Moderna. The company was founded in 2010 by Flagship Pioneering, a venture capital firm founded and run by Afeyan. Flagship participated in the development of Moderna’s scientific concept, its launch, and initial funding.
However, Afeyan does not oversee Moderna’s day-to-day operations; Stéphane Bancel serves as the company’s CEO. Afeyan’s role primarily focuses on strategic management and the board of directors.-0-
