Moderna Shares Plunge After 177% Surge on Cancer Vaccine Breakthrough
Moderna shares took a hit in premarket trading Thursday after surging 177% the previous day, as analysts scrambled to reassess the biotech company's value following positive late-stage data for its personalized cancer vaccine.
The vaccine, intismeran, met its primary goal in a Phase 3 trial by extending the time before melanoma returned in high-risk patients who had already undergone surgery. Merck shares, which jumped 12.6% on Wednesday, slipped more than 1% in premarket trading Thursday.
Bank of America analyst Alec Stranahan upgraded Moderna to Neutral from Underperform and more than quadrupled his price objective to $170 from $40, calling the data 'a watershed moment for Moderna.'
The upgrade reflects a fundamental reassessment of the company's prospects beyond infectious disease. However, significant questions remain unanswered.