Moderna Soars as Vaccine-Drug Combo Slows Recurrence of Melanoma

ARK Genomic Revolution ETF (ARKG) surged 10.32% to a record $47.67 after Moderna and Merck's mRNA cancer therapy succeeded in a Phase 3 trial. Moderna rose 177% to $174.38, Merck gained 13%. ARKG's top holdings, including Tempus AI (+23.91%), drove gains. The fund is up 64% YTD, 90% in 12 months.

Merck (MRK) stock surged 73% in the past year, outpacing the S&P 500, driven by successful clinical trials and FDA approvals. The company's pipeline, including LIPFENDRA and an mRNA cancer vaccine, addresses concerns about KEYTRUDA's patent expiration. Merck's forward P/E of 16x is lower than peers like Johnson & Johnson (JNJ) and Eli Lilly (LLY), suggesting potential undervaluation.

BJ's Wholesale shares rose 4% after Q2 earnings beat estimates, with revenue at $6.09B and EPS guidance raised. Ross Stores also gained over 4% on strong Q2 results and upbeat Q3 guidance. Crypto-related stocks like Robinhood and Coinbase surged as bitcoin climbed over 20% for the week. Broadcom rose 1% on reports of a $60B debt plan for a deal. OSI Systems dropped 10% after missing revenue expectations. The Boston Beer Company fell 3% following CFO departure news. O-I Glass jumped 10% after a C

Moderna (MRNA) and Merck (MRK) rose sharply after positive Phase 3 trial data for a skin cancer therapy. Biotech sector, up 40% YTD, saw gains. Aurinia (AUPH) settled litigation with Teva (TEVA), removing uncertainty. Ocular (OCUL) received positive analyst ratings. Precigen (PGEN) reported strong Q2 revenue and expects cash flow breakeven by year-end.

Merck (MRK) hit an all-time high of $153.53, up 78% in a year, after positive Phase 3 results for its mRNA cancer therapy with Moderna. Analysts are divided, with Goldman Sachs raising its target to $160 and UBS downgrading to Neutral at $150. Merck's revenue grew from $48.7B (2021) to $65.0B (2025), but it trades 7.5% above fair value with a high P/E of 55.2x. The stock is in overbought territory, with technical indicators suggesting potential exhaustion.

Moderna and Merck announced positive final-stage trial results for a personalized mRNA cancer vaccine, showing increased cancer-free survival in melanoma patients when combined with Keytruda. The vaccine, tailored to each patient's tumor, uses mRNA technology. Moderna's shares surged, but experts caution pending full data release and peer review. The companies are also testing similar vaccines for other cancers.