Back in September 2021,Moderna's and Merck's market cap valuation were only a few billions apart at ~$175bn and ~$182bn, respectively.

As the more diversified, future-proofed pharma, it makes sense that Merck's valuation has increased while Moderna's has tanked.

Merck announced yesterday that it will take up an option to partner with Moderna on development of a cancer vaccine used as an adjuvant alongside Keytruda.

Results from a Phase 2 study of the vaccine / Keytruda combo in melanoma will be available before the end of the year.

Positive results would validate Moderna's technology outside of COVID and likely make the company much more valuable. Merck would benefit from another blockbuster asset and ongoing superiority of Keytruda.