- Moderna's stock fell more than 25% to around $129 on Thursday, cutting more than $18 billion from its market valuation, after a record-setting 176% surge the previous day.
- The stock surge followed Moderna's announcement that its personalized cancer drug—an mRNA-based shot combined with Merck’s immunotherapy drug Keytruda—reduced melanoma recurrence and extended patients' lives without their melanoma returning.
- Bank of America analyst Alec Stranahan quadrupled his price target to $170 from $40, calling the results a 'watershed moment' for the firm.
- Moderna's market valuation was $51.5 billion on Thursday, down more than $18 billion from Wednesday's closing valuation of $69.6 billion.
- Stranahan noted that it is still unknown how much better the combined drug is than Keytruda alone, and more testing would likely be necessary.
- Leerink Partners analyst Mani Foroohar had written in June that Moderna's late-stage cancer vaccine trial would be a make-or-break event, with potential to work across multiple cancers; Merck and Moderna are exploring trials for other cancers, including non-small cell lung and bladder cancer.
- The stock surge made co-founder Thomas Langer a billionaire again, raising his roughly 3% stake from $730 million to about $1.7 billion; fellow co-founder Noubar Afeyan's net worth rose $184 million to $2.2 billion, and CEO Stéphane Bancel's fortune rose $2.5 billion to $5.8 billion.
- On Thursday, Afeyan's net worth fell $105 million to $2.1 billion, and Bancel's fell by $1.3 billion to $4.4 billion.
Moderna's stock experienced a dramatic decline of 25% to $129 on Thursday, following a record-setting surge of 176% the previous day, which had pushed its value above $174. This drop wiped out more than $18 billion from the company's market valuation, now at $51.5 billion.
The surge was fueled by positive results from a trial of Moderna's personalized cancer vaccine, developed in collaboration with Merck. The mRNA-based vaccine, when combined with Merck's Keytruda, showed significant promise in reducing melanoma recurrence and extending patient survival without the return of cancer.
Despite the stock's plunge, analysts remain optimistic. Bank of America analyst Alec Stranahan described the trial results as a “watershed moment,” raising his price target for Moderna from $40 to $170. However, he cautioned that further testing is needed to determine how much more effective the combined treatment is compared to Keytruda alone.
The stock's volatility has also impacted the fortunes of Moderna's co-founders. Thomas Langer saw his stake rise from $730 million to $1.7 billion after the surge, while Noubar Afeyan and CEO Stéphane Bancel also experienced significant increases in their net worth, although both saw declines on Thursday as the stock fell.
Looking ahead, Moderna and Merck are exploring additional trials for the vaccine targeting other cancers, including non-small cell lung cancer and bladder cancer.
“Bank of America analyst Alec Stranahan quadrupled his price target to $170 from $40, calling the results a 'watershed moment' for Moderna. The stock surge made co-founder Thomas Langer a billionaire again, raising his stake from $730 million to about $1.7 billion.”
Forbes
