After a cancer vaccine’s first success, the race is on to expand the impact

Moderna's shares fell 25.2% to $183.88, losing $24 billion in market value, despite positive cancer vaccine trial results with Merck. The trial showed a 42% reduction in cancer recurrence or death for high-risk melanoma patients. Analysts attributed the drop to a 'sell the news' reaction, noting the data was solid but questioning broader applicability. Merck shares also declined slightly.

Moderna's melanoma therapy, intismeran, reduced recurrence risk by 42% in a Phase 3 trial. The combination therapy also improved distant metastasis-free survival. The company reported successful manufacturing and safety profiles. Moderna is exploring the therapy in other cancer types. According to the company, intismeran is designed to stimulate immune responses against tumor-specific mutations.

Moderna's INTerpath-001 trial showed improved recurrence-free and distant-metastasis-free survival for intismeran plus pembrolizumab versus pembrolizumab alone in resected melanoma. The combination had similar serious adverse event rates, with overall survival follow-up ongoing, according to the company.

The iShares Biotechnology ETF (IBB) rose 23.1% through Oct. 23, driven by drug milestones. Merck and Moderna reported positive Phase 3 trial data for intismeran autogene. Roche's Enspryng gained FDA approval for thyroid eye disease. Eli Lilly plans to submit a weight-loss drug for FDA review in early 2027. IBB's expense ratio is 0.44%, while SPDR S&P Biotech ETF (XBI) has a 0.35% expense ratio.

Moderna and Merck's melanoma vaccine trial showed a 42% reduction in tumor recurrence and 38% in distant spread, impressing doctors. However, shares of both companies fell as investors questioned the vaccine's broader potential and commercial success. Analysts raised concerns about costs and competition. The full data will be presented at a medical conference.

Merck and Moderna reported Phase 3 trial results showing their personalized mRNA therapy, combined with Keytruda, reduced melanoma recurrence or death risk by 42% compared to Keytruda alone. The study involved 1,137 patients, with 2-year recurrence-free survival at 82.2% for the combination vs. 70.0% for Keytruda. The therapy is still investigational, and the companies are engaging with regulators.