Could this be a collaboration that saves lives? That’s the billion-dollar question today as Moderna (NASDAQ:MRNA) is reportedly working with Merck (NYSE:MRK) to develop an mRNA-based cancer vaccine. The purpose is to advance a personalized or tailored cancer treatment. We may be witnessing a signal moment in the history of vaccine development. At the very least, we’re seeing a good day for MRNA stock investors as the shares are quickly moving higher.
To be more specific, Merck exercised its option to jointly develop with Moderna and potentially sell mRNA-4157, an mRNA-based cancer vaccine. This vaccine is currently being tested in conjunction with Keytruda, Merck’s cancer immunotherapy.
While this latest development is still fresh, it’s been in the works for a while now. Moderna President Stephen Hoge clarified, “We have been collaborating with Merck on [a personalized cancer vaccine] since 2016.”
Hoge added, “[T]ogether we have made significant progress in advancing mRNA-4157 as an investigational personalized cancer treatment used in combination with” Keytruda. Now, however, Hoge hopes that the two pharma giants can co-develop “a new treatment paradigm in the management of cancer” with mRNA-4157.
What’s Happening With MRNA Stock?
Along with the scientific implications, there are financial and market moves to consider as well. In particular, MRNA stock traders went full-on bullish this morning, pushing the share price 10% higher at one point.
It’s hard to blame them for their enthusiasm. After all, Merck is going to pay Moderna $250 million to exercise the option, established back in 2016, for personalized cancer vaccines.
Investors should also know that, according to the press release, Moderna and Merck will “share costs and any profits equally under this worldwide collaboration.” So, there could be significant upside potential for investors of both companies.
Truly, this joint venture to establish a tailored cancer vaccine therapy could be a historic moment. It’s a proud day for both Merck and Moderna — and a very good day to be invested in MRNA stock.
On the date of publication, David Moadel did not have (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.
