Moderna, Merck start two randomized trial in cancers, says RBC Capital

RBC Capital tells investors in a research note that following the start of a third potentially pivotal trial in resectable squamous cell carcinoma, two additional Phase II trials have been posted on ClinicalTrials.gov and that Moderna (MRNA) and Merck (MRK) will explore their cancer vaccine as an add-on to pembrolizumab in the adjuvant settings for bladder cancer and renal cell carcinoma. RBC likes that both trials are randomized, that both companies have the confidence to start randomized Phase II trials in tumor types where there is yet to be data and that both indications are large opportunities. The firm likes that Phase III is now up and running and remains a believer in the cancer vaccine approach. RBC has an Outperform rating and $125 price target on Moderna shares.