Merck opted Wednesday to help Moderna develop a treatment the companies call a personalized cancer vaccine based on messenger RNA technology. MRNA stock surged on the news.
The companies will test the treatment in patients with high-risk melanoma. Although it's not a preventative measure, the treatment is still called a vaccine. Instead of preventing cancer, the drug prompts the immune system to generate specialized killer cells known as T cells. These are targeted to the unique mutations in each patients' tumors.
Merck and Moderna have collaborated on personalized cancer vaccines since 2016, Moderna President Stephen Hoge said in a written statement. Wednesday's decision allows Merck to jointly develop and commercialize the vaccine for melanoma patients. Merck will pay Moderna $250 million.
"With data expected this quarter on (personalized cancer vaccines), we continue to be excited about the future and impact (messenger RNA) can have as a new treatment paradigm in the management of cancer," he said.
On the stock market today, MRNA stock surged 8.3% to 130.72. Merck stock inched a fraction down to 90.42.
MRNA Stock: The Next Chapter In Cancer Vaccines
The personalized cancer vaccine is based on the same messenger RNA, or mRNA, technology Moderna used to develop its widely used Covid vaccine. That vaccine introduces a single spike protein into the immune system, helping it generate antibodies capable of blocking the virus.
But MRNA stock has trended lower since February 2021, leaving investors to ask what's next. The question is even more important as demand for Covid vaccines drops off.
In the case of the personalized cancer vaccine, Merck and Moderna hope melanoma patients will generate T cells capable of handling the their tumors' mutations. Further, they will test the vaccine in combination with Keytruda against Keytruda alone in 157 patients with high-risk melanoma.
After surgery to remove the tumor, patients will receive either treatment for up to a year. They can drop out if their cancer returns or if the treatment proves toxic.
The news Wednesday helped MRNA stock gap closer to its 50-day moving average, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
