Moderna (Nasdaq: MRNA) and Merck (NYSE: MRK) said their jointly developed mRNA melanoma vaccine trial succeeded, sending Moderna shares sharply higher on Wednesday. The stock jumped as much as 176.97% and closed at $174, the biggest single-day gain in the company’s history, according to ABMedia.
ABMedia said the clinical result lifted not only the two companies involved, but also the broader biotech sector.
Intismeran Autogene posts positive result
Moderna and Merck announced that their cancer vaccine, Intismeran Autogene, delivered a successful outcome. The report said Moderna’s Intismeran, when combined with Merck’s Keytruda, can reduce the risk of recurrence for some melanoma patients, and that announcement drove a strong move in both stocks.
Leerink Partners analyst Daina Graybosch described the Phase 3 result for the vaccine as “historic.”
Moderna and Merck stocks rally
After the news, Moderna rose 176.97% and closed in the $174 range. Merck, its development partner, gained more than 12.60% on the day and was priced at $152.20.
ABMedia added that Moderna’s surge helped push up other drugmakers working on similar research. The companies named in the report were BioNTech (BNTX), AbbVie (ABBV), Amgen (AMGN), Eli Lilly (LLY), and Johnson & Johnson (JNJ), with their shares reaching new highs.
Capital rotates toward healthcare and biotech
ABMedia cited analysts as saying that after demand for COVID-19 vaccines cooled, the market had been watching Moderna’s transition strategy with caution. This cancer vaccine result was presented as proof of the commercial value of biotech research and development.
The report also said the biopharma industry went through a weak stretch in the post-pandemic period, while investors had concentrated capital in technology and semiconductor stocks. More recently, funds have started rotating back into healthcare, and this trial result renewed market interest in related names.
Regulatory and pipeline developments remain in focus
ABMedia also noted that U.S. President Donald Trump nominated Heidi Overton to lead the Food and Drug Administration, filling a vacancy that had been open since mid-May.
Separately, Moderna had already won FDA approval in early August for its seasonal flu vaccine mFLUSIVA and started a Phase 1 trial for its Ebola vaccine, mRNA-1469. ABMedia said those regulatory and research advances could support Moderna and the broader biotech industry going forward.