Merck, Moderna Stocks Soar After Melanoma Trial Success

Summary

Sam Fazeli of Bloomberg Intelligence discusses Moderna and Merck after positive late-stage melanoma vaccine trial data. He sees the data as clinically meaningful and a potential breakthrough for mRNA cancer vaccines, but says Merck is the cleaner share-price way to play the news because Moderna's opening surge likely includes short covering. He also downplays anti-vaccine political risk for cancer vaccines.

• Moderna and Merck shares surged after the melanoma vaccine trial success.
• Fazeli says Merck is the best share to look at because its move is less distorted by short covering.
• The trial succeeded at interim and was called clinically meaningful, not just statistically significant.
• He sees potential for a 30-35% reduction in melanoma recurrence risk.
• The mRNA cancer vaccine result may raise hopes for other indications.
• Cancer vaccines are unlikely to face the same anti-vaccine uptake issues as COVID or flu.