Moderna (NASDAQ:MRNA) is beginning a mid-stage trial of its experimental cancer vaccine in partnership with Merck (MRK). MRNA will test its experimental cancer vaccine on patients diagnosed with cutaneous squamous cell carcinoma (cSCC), a type of skin cancer. The news lifted investors’ sentiments, resulting in MRNA stock closing about 9% higher in yesterday’s regular trading session.
The companies plan to enroll about 1012 participants in the study and expect to start the trial in mid-April. The trial will assess the efficacy of MRNA’s V940, an individualized neoantigen therapy (INT), in combination with MRK’s Keytruda or pembrolizumab. Keytruda holds approval for use in various cancer treatments. The trial will evaluate this combination therapy in patients with surgically removable cSCC compared to the current standard of care.
It is worth mentioning that this trial marks MRNA’s strategic expansion of its messenger RNA (mRNA) technology beyond its use in COVID-19 vaccines.
UBS Analyst Expresses Optimism
Analyst Eliana Merle from UBS is optimistic about Moderna’s overall drug pipeline, with a particular focus on the Phase 3 trial of the cytomegalovirus (CMV) vaccine. The results from this trial are expected to come later this year.
Merle believes that positive results from MRNA’s late-stage CMV vaccine trial could increase the stock price. Further, she expects that the vaccine has the potential to generate over $3 billion in revenue.
What Is the Forecast for MRNA Stock?
Overall, on TipRanks, MRNA has a Moderate Buy consensus rating based on eight Buy, five Hold, and two Sell ratings. The analysts’ average price target on MRNA stock of $132.43 implies an 18.26% upside potential from current levels. Shares of the company have gained 43.5% over the past three months.
