Leerink skeptical on sustainability of Moderna rally given eroding fundamentals

Leerink notes that Moderna (MRNA) and Merck (MRK) announced 3-years data from the Phase 2b KEYNOTE-942 study of their individualized neoantigen therapy mRNA-4157/V940 in combination with pembrolizumab vs. pembrolizumab alone as adjuvant treatment for high-risk melanoma. Updated data at a median follow-up of about 3 years improved RFS 49% and reduced risk of distant metastasis or death by 62% vs. Keytruda alone. Safety profile was largely in line with prior update, the firm adds. Moderna’s stock is up double-digits on Thursday morning, amid strength in biotech as a whole and partially driven by consensus short positioning. Leerink is skeptical on the sustainability of this rally as underlying fundamentals continue to erode and reiterates an Underperform on the shares.