Moderna (NASDAQ:MRNA) has been on a rough trajectory in recent days. Indeed, continuous declines in MRNA stock earlier this week have hurt investor sentiment in the large-cap biotechnology company. That’s particularly true as investors attempt to determine the value that should be placed on vaccine-related companies in an era when Covid-19 vaccine sales are quickly dwindling.
A rather dim outlook provided by rival Pfizer (NYSE:PFE) earlier this week had sent shares of many peers, including Moderna, tumbling. The thesis behind this selling pressure is simple: The pandemic is over and demand for Covid boosters remains muted.
However, Moderna is receiving a shot in the arm today on some company-specific news. More specifically, MRNA stock is up 9% on reports of positive clinical trial data for the company’s skin cancer treatment in combination with Merck’s (NYSE:MRK) Keytruda.
Let’s dive into what the company announced — and whether this price move can be sustained from here.
MRNA Stock Surges on Positive Clinical Trial Data
This week’s price action exemplifies some of the sentiment around Moderna stock over the past two years. In one camp, bears continue to purport that Moderna is nothing more than a Covid-19 beneficiary with a pipeline that will take years to develop. In the other camp, the bulls suggest that Moderna’s mRNA technology has vast applications for treating and curing other diseases. As a result, they believe that the technology should be highly valued.
Today, though, the bulls are winning after Moderna’s mRNA-4157 therapy, which treats melanoma in combination with Merck’s Keytruda, saw some promising results. Reportedly, the combination of these two drugs “reduced the risk of recurrence or death by 49% in a Phase 2 trial.” The company also reported minor adverse events, which suggests that the treatment appears to be safe for use, at least in these preliminary trials.
While more data will need to be gathered, the two companies have already begun Phase 3 trials, meaning a U.S. Food and Drug Administration (FDA) decision could be forthcoming next year. So, for investors looking for another catalyst for MRNA stock, they now have something to hang their hats on.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
