Moderna-Merck Cancer Vaccine Success Triggers Oncology Rally

The Phase 3 INTerpath-001 trial for Moderna and Merck's personalized mRNA cancer vaccine, Intismeran Autogene, has shown promising results in treating high-risk melanoma. The therapy helped patients remain cancer-free longer and delayed the disease from spreading to distant parts of the body when combined with Keytruda.

The success of this trial has sparked a rally in oncology stocks, with Moderna surging 177% on Wednesday and Merck gaining about 13%. Other mRNA and oncology stocks also saw significant gains, including BioNTech, Arcturus Therapeutics, Tempus AI, and Novavax.

Sellas' lead candidate, Galinpepimut-S (GPS), a cancer vaccine designed to train the immune system to recognize WT1, is being tested in combination with Keytruda. ImmunityBio's approved drug Anktiva activates natural killer cells and T cells, key parts of the immune system's cancer defenses.

Analysts at Morningstar have raised their 2035 Intismeran sales forecast to $16.8 billion, citing the trial's success as a 'good sign' for studies in larger cancers. Goldman Sachs called the readout the 'initial unlock' for Moderna's cancer business, while UBS highlighted the therapy as a potentially meaningful new growth driver.