Moderna shares double as cancer vaccine data rekindles investor hopes

On Wednesday, Moderna's shares more than doubled, boosting the company's market value by approximately $30 billion, following promising late-stage data on its personalized mRNA cancer therapy developed in collaboration with Merck. This development has reignited investor hopes and led to a surge in demand for the stock. The therapy, known as intismeran, plays a crucial role in Moderna's strategy to demonstrate the potential of mRNA technology beyond its COVID-19 vaccine franchise and infectious disease vaccines.

The company has also ventured into flu vaccines and experimental treatments for conditions such as norovirus and Lyme disease.

Analysts believe that the positive cancer vaccine data could serve as a significant catalyst for Moderna, potentially bolstering investor sentiment. According to Lale Akoner, a global market strategist for eToro, the data provides investors with stronger evidence that mRNA technology could have a lasting future beyond infectious diseases.

Peter Andersen, founder of Andersen Capital Management in Boston, remarked that investors are now estimating the potential impact on revenue and earnings if an effective cancer treatment becomes available, estimating it as extremely profitable for the company.

The Nasdaq biotech index experienced a 4.4% increase, reaching a new all-time high, fueled by the rise in Moderna's shares. Shares of BioNTech and Novavax also saw substantial gains, with the latter climbing 6%. Moderna's stock price reached a two-year-high of $140.19, on track to add about $30 billion to its market capitalization. Trading volume for Moderna shares exceeded 15 times its 50-day average.

Merck's shares also rose by 10% to an all-time high, while Leerink Partners analysts now project a potential sales value of about $1.4 billion for the therapy by 2032, up from their earlier estimate of up to $1.2 billion. Following the optimistic data, investors betting against Moderna's shares faced record one-day losses, with short interest in the company's shares standing at 13.5% of its free float, making it one of the most-shorted large-cap stocks.