Moderna’s Cancer Vaccine Trial Data Raises Concerns Among Investors

Moderna’s stock fell more than 1% following disappointing market reactions to data from its latest melanoma vaccine trial. The company’s share price had dropped over 17% a day earlier, resulting in a loss of over $17 billion in market capitalization.

The results of the Phase 3 trial, conducted in collaboration with Merck, showed that their personalized mRNA-based vaccine could reduce the risk of melanoma recurrence or death by 42% when used alongside the immunotherapy drug Pembrolizumab. Investor enthusiasm waned, and Wall Street remained cautious.

Analysts expressed mixed feelings about the trial’s implications. Goldman Sachs raised its price target for Moderna from $120 to $137 but maintained a Neutral rating, indicating skepticism about the stock’s potential for significant gains. Morgan Stanley also rated it Neutral, with a target of $95, while Citi placed a Sell rating with an $80 target.

Georgina Long, the principal investigator of the trial, described the results as “transformative,” suggesting that they could fundamentally shift treatment methodologies for earlier-stage melanoma patients. The study included 1,137 participants and monitored them for an average of 24.6 months.

Some side effects were reported—such as fever, fatigue, and injection site pain—consistent with earlier trials. Stéphane Bancel, Moderna’s CEO, stated, “These results reinforce our conviction that mRNA has the potential to fundamentally change how we treat cancer.” However, the company emphasized that the vaccine is not intended to prevent melanoma but to lower recurrence risks post-treatment.

The full data from the trial is expected to be released during Europe’s largest cancer conference in Madrid, raising anticipation. The therapy remains under investigation to confirm its efficacy before seeking approval from health authorities.