If Moderna's CEO Is Right, the Stock's Rally Could Just Be Getting Started
Stéphane Bancel has high hopes for the company's cancer vaccine, beyond just treating melanoma.
Moderna, the hottest stock in the S&P 500 this year, has seen a remarkable 650% increase, with Sandisk coming in second at around 380%. The company's performance has been exceptional, despite recent struggles following a decline in demand for its COVID vaccine and pill. Now, there's significant excitement around Moderna due to a cancer vaccine it's developing in partnership with Merck.
If the vaccine, intismeran, proves as effective as CEO Stéphane Bancel believes, the stock could potentially double. In a recent late-stage trial, intismeran reduced the risk of death or recurrence in melanoma patients when used with Merck's Keytruda by 42%. Bancel is optimistic that intismeran could work beyond melanoma, potentially unlocking massive growth for Moderna - Keytruda alone generated $32 billion in revenue for Merck last year.
While Merck's market cap is around $370 billion, Moderna's valuation is less than $90 billion. Investors should tread carefully, as intismeran isn't approved yet, and while the results are encouraging, there's no guarantee of massive gains.
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