Moderna stock sees boost over skin cancer treatment trials – Yahoo Finance

Moderna (MRNA) shares have jumped by over 9% on Thursday in relation to positive trial results in Moderna and Merck's (MRK) collaborative skin cancer treatment that utilizes both a vaccine and the drug Keytruda. Additionally, Pfizer (PFE) disappointed investors this week over the pharmaceutical company's 2024 guidance.

Yahoo Finance Health Reporter Anjalee Khemlani details the top stories and biggest drivers behind pharmaceutical stocks Thursday.

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- Shares of Moderna popping today on positive trial data for a skin cancer treatment. Moderna developing the vaccine alongside Merck, but those shares little changed today. Here with more is Yahoo Finance's, Anjali Khemlani. Anj.

ANJALI KHEMLANI: Hi, Julie. Well, yes. So, of course, Moderna out with this update on its cancer vaccine that it is testing in tandem with Merck's Keytruda, that blockbuster cancer drug. And what they found is that the drug in tandem with the vaccine can reduce the risk of recurrence of melanoma-- late stage melanoma-- by up to 49% after three years. That's a really huge number in terms of the protection that it can give patients.

So that's where the jump is coming from today. Moderna finally getting a little bit of positive news for its stock. We know that it's been a little bit under pressure because of the lack of movement in its pipeline ever since the one vaccine that they do have to their name, which is the COVID-19 vaccine.

So I had a chance to catch up with the CEO earlier today. And we were talking about that and the leadership changes that the company has been through as well. And how he is now going to be looking over commercial progress. And he wants to, in his words, obsess over it. So looks like Moderna is in for some hard times ahead.

- Yeah, and Anj, I want to switch names to another name here. Checking out Pfizer today under some pressure. It's down more than 2%. It looks like that's off this 2024 outlook. What's new there?

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ANJALI KHEMLANI: That's right. First of all, I just want to point out, I never thought I'd have to say these two companies names in the same breath again since COVID. But here we are again. So Pfizer--

- Because they're both facing some similar challenges moving past that era.

ANJALI KHEMLANI: Absolutely. And that is where the pressure on Pfizer comes from. Downgrading its 2024 outlook to be basically flat compared to 2023. And saying that its COVID portfolio is estimated to bring in just $8 billion. That's a lot less than what the Street was looking for and estimating.

But in the call yesterday, Pfizer CEO, Albert Bourla, as well as CFO, Dave Denton, did have to battle a lot of really stern questions from analysts. A lot of doubt and a lot of wariness that has been sort of an overhang on the stock for years.

Even during the pandemic, we had conversations here at Yahoo Finance with Albert Bourla about just that. About how their stock didn't get that boost that a lot of others saw during the pandemic. And he said even earlier this year, in April, saying, quote, "Although I'm not happy, all we can do is to execute on our strategy so that investors will see that this is a good growth opportunity."

And that growth opportunity he's referring to is the two acquisitions last year as well as that huge $43 billion C-Gen which is oncology focused this year. As well as getting 13 launches of new products from the pipeline. So a lot of R&D focus for the company. And still not being rewarded there by the Street.

Lots of doubts, including, for example, in an analyst note from JPM, saying "PFE shares are looking increasingly washed out at current levels, we do not see a clear path for the stock to recover given the ongoing uncertainty about the company's core earnings power."

And basically what they're saying, and what these analysts have been saying, is that even though they have these acquisitions and they have this rich pipeline, there's nothing to really make up for what could be a $17 billion hole from patent expiry at the end of the decade. And so there's no catalyst. There's no blockbuster to take place what they're losing.

And even though there's a lot in the pipeline, there's nothing that's really stand out and enough to really just weigh on-- give up the weight on the stock.

- All right, we'll keep watching. Anjali, thank you so much for that.

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Moderna stock sees boost over skin cancer treatment trials - Yahoo Finance