Moderna stock yo-yoed Monday after European regulators granted its Merck-partnered personalized cancer vaccine a key designation.
Under the prime scheme designation, the European Medicines Agency gives early feedback on test results to speed up the development and evaluation of medicines that may significantly improve patients' lives. In this case, Moderna and Merck are testing their cancer vaccine in combination with Merck's Keytruda in patients who've had their melanoma surgically removed.
"There is a high unmet need for therapies in melanoma, as it can be a life-threatening condition where available therapies may not be sufficiently effective in a significant proportion of patients," Moderna's president Stephen Hoge said in a written statement.
On today's stock market, Moderna stock ended the regular session with a 1.2% gain at 160.15. Merck stock rose 0.3% to close at 112.61. That reversed from a fractional loss in earlier trades after Merck scrapped two studies using Keytruda in patients with melanoma and colon cancer.
Moderna Stock Flirts With Key Lines
The personalized cancer vaccine works by training the immune system to find and block a resurgence in a patient's own tumor cells.
In Phase 2 testing, the vaccine combined with Keytruda reduced the risk of cancer relapse or death by 44% compared with Keytruda alone. Further, researchers tested the vaccine in patients with high-risk melanoma that was surgically removed. That news sent Moderna stock flying in December.
Earlier this year, the Food and Drug Administration also granted the combination a breakthrough therapy designation. This could help expedite development and review in the U.S.
"This milestone underscores the potential for personalized approaches to help improve outcomes for people living with certain types of melanoma," said Eric Rubin, senior vice president of global clinical development for Merck Research Laboratories, in written remarks.
Moderna stock currently trades in line with its key moving averages, according to MarketSmith.com. Meanwhile, Merck shares are consolidating with a buy point at 115.59.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
