By Senad Karaahmetovic
Moderna (NASDAQ:MRNA) shares surged nearly 20% yesterday after the company’s mRNA cancer vaccine, developed together with Merck & Company Inc (NYSE:MRK), met the primary efficacy endpoint in Phase 2b trials.
In combination with KEYTRUDA, the cancer vaccine showed a “statistically significant and clinically meaningful reduction in the risk of disease recurrence or death compared to KEYTRUDA monotherapy in stage III/IV melanoma patients.”
While the market was evidently enthusiastic about the Phase 2b results, Chardan Research analysts slashed the rating to Neutral from Buy, citing swollen valuation.
“While we remain positive on the broad potential for mRNA in infectious disease vaccines as well as in oncology, autoimmune, and rare disease applications, the updates to our oncology franchise estimates bring our PT to $191, indicating to us the company is fairly valued at present,” the analysts wrote in a note.
The analysts prefer to move to the sidelines given yesterday’s run-up in shares, “pending further details on the oncology strategy as well as updates on Covid/flu/RSV programs.”
Moderna shares are still down more than 22% year-to-date.