Q3 Earnings Roundup: Zoetis (NYSE:ZTS) And The Rest Of The Branded Pharmaceuticals Segment

Moderna Inc. shares were in focus on Wednesday after Bank of America Securities (BofA) raised its price target on the stock following new long-term data from the company’s experimental skin cancer vaccine developed with Merck, while keeping a bearish rating in place.

Merck shares rose 0.6% in regular trading before slipping 0.6% after hours, while Moderna climbed 2.8% during the session and edged 0.2% lower in extended trading.

Price Target Raised, Rating Maintained

BofA raised its price target on Moderna to $27 from $24 and reiterated an ‘Underperform’ rating on the shares. However, based on Moderna’s last closing price of $43, the updated target still implies about a 37% downside.

The firm said the increase followed the release of five-year data for Intismeran Autogene, Moderna’s personalized cancer vaccine, used in combination with Merck’s Keytruda in patients with high-risk melanoma.

While noting some upside potential, the brokerage pointed to challenges seen in similar combination treatments in the past, logistical challenges, and a “higher bar for success.” BofA said the higher price target reflects increased sales expectations for the vaccine in patients who have undergone surgery for melanoma.

Five-Year Skin Cancer Results

Moderna and Merck said the latest follow-up showed the vaccine combination continued to help patients remain cancer-free for longer than Keytruda alone.

After five years, patients who received the combination saw a 49% lower risk of the cancer returning or leading to death than those treated with Keytruda by itself. The companies said the findings build on earlier updates shared at the two-year and three-year marks. Moderna and Merck also said they plan to share additional follow-up results at an upcoming medical meeting.

Oncology Pipeline Progress

“Now with five years of follow-up data, today's results highlight the potential of a prolonged benefit of the intismeran autogene and Keytruda combination in patients with resected high-risk melanoma,” said Kyle Holen, Moderna’s head of oncology development.

Holen said the company continues to invest in cancer research and is preparing for several upcoming milestones, including results from a late-stage melanoma study being run with Merck, as well as progress across eight ongoing studies in different cancer types. Meanwhile, Merck’s head of oncology, Marjorie Green, said the long-term results are encouraging for patients at high risk of the disease returning after surgery.

Moderna said it is continuing to expand its cancer treatment work alongside its vaccine business. The company and Merck are currently running or enrolling studies across several cancers, including lung, bladder, kidney, and melanoma, as part of their joint development program for the vaccine.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment was ‘neutral’ for Moderna and ‘bearish’ for Merck, with both seeing ‘normal’ message volume.

Moderna’s stock has risen 26% over the past 12 months, while Merck’s stock has jumped 16% over the same period. On Wall Street, analysts are largely neutral on MRNA, according to Koyfin data: 17 out of 24 analysts covering the stock recommend a ‘hold’ rating, while four have a ‘buy’ or ‘strong buy’ conviction, and the rest have a ‘sell’ rating. Their consensus price target of $​​36.75 leaves MRNA trading at a more than 14% premium.

Moderna (MRNA) and Merck (MRK) said on Tuesday that their intismeran autogene vaccine based on messenger RNA (mRNA), in combination with cancer drug Keytruda, reduced the risk of recurrence or death by 49% in certain patients with high-risk melanoma on five years of follow-up when compared to Keytruda alone.

The improvement was observed in patients with stage III/IV melanoma who had complete removal of their tumors. Melanoma is a serious form of skin cancer characterized by the uncontrolled growth of pigment-producing cells.

Moderna and Merck said that they now plan to present further data from the follow-up at an upcoming medical meeting.

Executives’ Take

The clinically meaningful improvement in recurrence-free survival builds on the analyses conducted at about two years of follow-up, as well as three years of follow-up, the companies said.

"We continue to invest in our platform in oncology because of encouraging outcomes like these, which illustrate mRNA's potential in cancer care. We look forward to several additional milestones to come, including the results of our Phase 3 study in adjuvant melanoma in collaboration with Merck, and continued progress across the eight Phase 2 and Phase 3 studies in multiple tumor types and patient populations," Moderna's Senior Vice President and Head of Development of Oncology and Therapeutics Kyle Holen said.

Moderna is currently seeking to pivot into oncology and rare-disease therapeutics. "Over the next three years, we expect to build a large seasonal vaccine franchise for at-risk populations and invest the cash generated into oncology and rare disease therapeutics," CEO Stéphane Bancel said in November.

Investment in late-stage oncology and rare disease programs will set the company up for additional growth in 2027 and 2028, as per the firm.

Shares of MRNA traded 1.1% higher at the time of writing while MRK stock traded marginally in the red.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around MRNA stock fell from ‘extremely bullish’ to ‘bullish’ territory over the past 24 hours, while message volume dipped from ‘extremely high’ to ‘high’ levels.

Meanwhile, sentiment around MRK shares stayed within the ‘neutral’ territory, coupled with ‘normal’ message volume.

A Stocktwits user opined that the news is “solid” for Moderna’s oncology segment.

https://www.stocktwits.com/MobyOneCanobi/message/642290058

Another user voiced hopes for the stock crossing the $50/share price this week.

https://www.stocktwits.com/Raven67/message/642288562

MRNA shares have gained 18% over the past 12 months while MRK shares have gained 13%. 

By Colin Kellaher

Eli Lilly has won U.S. Food and Drug Administration breakthrough -therapy designation for its sofetabart mipitecan drug candidate for certain patients with ovarian cancer.

Eli Lilly on Tuesday said the designation covers sofetabart mipitecan for the treatment of adults with platinum-resistant epithelial ovarian, fallopian tube or primary peritoneal cancer who have received prior bevacizumab and mirvetuximab soravtansine, if eligible.

The FDA's breakthrough-therapy designation aims to expedite the development and review of a drug for serious conditions when preliminary clinical evidence shows the drug might offer substantial improvement over available therapies.

Eli Lilly said patients face limited treatment options when ovarian cancer recurs during or within six months of platinum therapy, known as platinum-resistant disease.

The Indianapolis drugmaker said the FDA's designation is based on encouraging preliminary results from a Phase 1a/b study of sofetabart mipitecan, which recently advanced into a Phase 3 study.

Write to Colin Kellaher at colin.kellaher@wsj.com

By Nicholas G. Miller

Moderna and Merck's cancer vaccine reduced the risk of relapse of death for melanoma patients, five-year data from a Phase 2b trial showed.

The companies on Tuesday said the vaccine, in combination with Merck's immunotherapy Keytruda, reduced the risk of recurrence or death by 49% compared with Keytruda alone.

"We continue to invest in our platform in oncology because of encouraging outcomes like these, which illustrate mRNA's potential in cancer care," said Kyle Holen, a senior vice president at Moderna.

The companies had previously released promising three-year data from the study, and on Tuesday they said the treatment "continued to demonstrate sustained and clinically meaningful improvement" in reducing the risk of death and relapse.

The companies currently have eight Phase 2 and Phase 3 clinical trials across multiple tumor types, including melanoma, non-small-cell lung cancer, bladder cancer and renal cell carcinoma.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

Syngene International Limited on Monday, January 19, announced an extension of its long-term strategic research collaboration with Bristol Myers Squibb, with the partnership now set to run until 2035, further deepening a relationship that spans more than 25 years.

In a filing, the Bengaluru-based contract research, development and manufacturing organisation (CRDMO) said the expanded agreement will broaden the scope of integrated services across the drug development lifecycle. It will include discovery and translational sciences along with pharmaceutical development, manufacturing, clinical trials, and data and IT services.

The collaboration is aimed at enabling seamless progression of drug candidates from early research to commercialisation.

Syngene Managing Director and CEO Peter Bains said the partnership, spanning over 25 years, is anchored in scientific excellence and operational reliability.

He said, "The agreement to extend this partnership through 2035 enables us to plan together for the future in terms of building new capabilities and infrastructure with a decade long horizon."

The collaboration positions Syngene to support Bristol Myers Squibb’s next wave of discovery, development and manufacturing programmes with the potential to improve patient outcomes globally, Bains added.

Payal Sheth, Senior Vice President, Therapeutic Discovery Sciences at Bristol Myers Squibb, said, "This expanded collaboration reflects our commitment to advancing innovative science by effective integration of our research, development, and manufacturing capabilities to accelerate the delivery of transformative medicines and bring hope to patients around the world who are waiting for new treatment options."

The collaboration between the two companies began in 1998 and led to the establishment of the Biocon Bristol Myers Squibb Research and Development Center (BBRC), Syngene’s first dedicated R&D centre, which was fully commissioned in 2009.

The BBRC has since evolved into a major strategic R&D hub for Bristol Myers Squibb, supporting capabilities across target identification, lead discovery and optimisation, pharmaceutical development, molecular and cell biology, protein sciences, assay biology and clinical biomarkers.

The centre currently houses around 700 Syngene scientists working as an extension of Bristol Myers Squibb’s global research organisation, contributing to discovery, preclinical development and patent filings across therapeutic areas such as cardiovascular, fibrosis, immunology and oncology.

Syngene said the BBRC has played a key role in accelerating the progression of novel compounds from early discovery to first-in-human studies, helping reduce development timelines and overall costs for Bristol Myers Squibb.

Earlier this month, brokerage firm Macquarie said it is positive on the stock.

The brokerage maintained its "outperform" rating on Syngene with a price target of ₹835 apiece, indicating an upside potential of nearly 28% from its previous close.

Macquarie believes that Syngene offers an attractive risk-reward, and expects fundamentals to improve while its valuations remain attractive.

Shares of the company were trading marginally down at ₹627 as of 11:10 am, still higher than the intraday lows of ₹619.95. The stock has dropped 4.14% in the past one month.