Moderna trims losses as investors digest melanoma vaccine trial data

Moderna (MRNA) trimmed losses Friday, rebounding from a sharp sell-off in the previous session, as investors digested data from a late-stage trial of its personalized melanoma vaccine.

The stock opened lower but climbed into positive territory during the session, a day after plunging more than 17% on Thursday in its worst single-day performance since Aug. 20.

More than $17 billion in market value vanished on Thursday as details from the late-stage trial circulated ahead of the official debut. Merck (MRK), Moderna’s partner on the vaccine, confirmed that the results came out early. The full data is set for release on Saturday at Europe’s biggest cancer conference in Madrid.

199.82 -2.81 (-1.39%)

As of 2:30:57 PM EDT. Market Open.

The leaked figures, though not bad, initially failed to impress Wall Street, which had grown increasingly cautious on the stock in recent weeks after its blistering rally this year.

Goldman Sachs recently raised its target on the stock to $137 from $120 while maintaining a Neutral rating, well below the $204 level where shares stood on Friday.

Morgan Stanley also has a Neutral rating, with a price target of $95. Meanwhile, Citi analysts set an $80 target and a Sell rating on the stock last month, given its rapid run this year.

Wall Street is mostly neutral on the stock with five Buy, 15 Hold, and five Sell ratings.

Shares of the biotech company rallied over the summer as it is no longer valued solely on its declining COVID-19 vaccine business but increasingly on its potential to become a major player in cancer treatment.

In August, Moderna announced positive phase 3 results for its personalized cancer vaccine, developed in partnership with Merck, helping drive a sharp rally in the stock.

Cambridge, MA - June 26: A lab at the new Moderna headquarters outside Kendall Square. (Photo by David L. Ryan/The Boston Globe via Getty Images)
A lab at the new Moderna headquarters outside Kendall Square. (David L. Ryan/The Boston Globe via Getty Images) · Boston Globe via Getty Images

Ines Ferre is a senior business reporter for Yahoo Finance.

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