Moderna (MRNA) stock plunged Thursday, Oct. 22, after Phase 3 trial results for its experimental cancer vaccine were leaked ahead of a major medical conference.
Shares of Moderna fell 17.6%, while Merck (MRK) dropped 1.76%.
The sell-off came despite positive trial results for intismeran autogene, Moderna’s personalized mRNA cancer vaccine developed with Merck.
Moderna has been one of the S&P 500’s top-performing stocks this year, surging 587% year-to-date, mostly following its August announcement that the Phase 3 trial had succeeded. Merck shares have gained about 40% over the same period.
Moderna cancer vaccine data leaked ahead of conference
The Phase 3 INTerpath-001 trial evaluated intismeran autogene, a personalized mRNA melanoma vaccine, in combination with Merck’s immunotherapy drug Keytruda in patients with high-risk melanoma.
The study examined whether the combination could reduce cancer recurrence and distant metastasis compared with Keytruda alone.
The detailed results were scheduled for release on Saturday, Oct. 24, at a major medical conference in Madrid.
Also read: Meta stock falls despite Wall Street analysts raising price targets
However, Oncology Central, a cancer news website operated by publishing company Informa, prematurely published an article containing the embargoed data, MarketWatch reported.
Merck and Moderna subsequently released the trial results.
Wall Street analyst said Moderna sell-off was ‘a sell the news event’
Bernstein said the leaked results appeared to show “a strong result” for the combination treatment, The Fly reported.
The firm described the findings as a “strong Phase 3 result and meaningful validation of Moderna’s individualized neoantigen platform.”
Despite the positive data, Moderna shares fell sharply, which Bernstein is “interpreting as a sell the news event.” Bernstein maintained its Market Perform rating and $45 price target on Moderna.
Also read: Intel stock surges on JPMorgan upgrade after 14% weekly plunge
Wells Fargo also said concerns over the trial data “may be overdone.”
The firm noted that recurrence-free survival results exceeded investor expectations, while overall survival data are not yet mature.
Wells Fargo said it would buy Merck shares on weakness ahead of other potential catalysts, including upcoming Sac-TMT lung cancer data at the European Society for Medical Oncology conference.
The firm maintained its Overweight rating and $165 price target on Merck.
Both analysts’ price targets are below Moderna’s closing price of $202.63.
Related: Cathie Wood sells $16 million of surging tech stock
