Moderna Stock Is Surging. Why a Cancer Vaccine Study Has Sparked a Rally. -- Barrons.com

Dow Jones01-22 19:27

By George Glover

Moderna is on a roll, with investors hopeful that positive results from a cancer vaccine trial can revive the pharma stock after a stagnant run.

Shares climbed 4.4% to $51.99 in premarket trading, making Moderna the S&P 500's top performer ahead of the opening bell Thursday. Futures tracking the benchmark index gained 0.6% higher Greenland tariff relief rally gathered pace.

The stock was on course to extend a rally from the previous session. It surged 16%. Moderna and Merck on Tuesday said that five-year data from a Phase 2b trial showed that the intismeran autogene vaccine, in combination with Merck's immunotherapy Keytruda, had reduced the risk of relapse or death for melanoma patients.

Merck stock gained 0.1% in the premarket session after rising 1.5% on Wednesday.

Wall Street is hopeful that Moderna's pipeline of cancer drugs can drive earnings growth, at a time when the company's core respiratory vaccine business is floundering.

Evercore ISI analyst Cory Kasimov wrote in a research note this week that the intismeran autogene mRNA vaccine is "lead oncology asset and a critical value driver beyond respiratory vaccines." He rates Moderna In Line, with a $28 price target.

The stock slumped 29% in 2025 as investors worried that Moderna would run through its pandemic-era windfall. The S&P 500 rose 16% in 2025.

The vaccine company had accumulated nearly $20 billion in cash by early 2022 thanks to the record-smashing sales of its Covid-19 shot -- but has been losing billions of dollars a year since 2023.

But shares have surged 69% already this year. The surge has been driven in part by "investor positioning ahead of multiple oncology readouts expected this year," said Evercore's Kasimov.

Write to George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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January 22, 2026 06:27 ET (11:27 GMT)

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