1 New Green Flag for Modena and Murray Stocks

According toModerna firms(NASDAQ Resonance: MRNA)The biotech company that makes the Spikevax coronavirus vaccine may be developing another blockbuster drug, this time in partnership with the American Association for Cancer Research, according to new data revealed at its annual meeting on April 8, which will be held in Washington, D.C., in conjunction with the American Cancer Society.resonance firms(New York Stock Exchange: MRK)) name of a Personalized Cancer Vaccine (PCV) developed for the treatment of head and neck cancer.

There's no question that favorable data will naturally lead to favorable sentiment, but in the long run, this new development may be more positive than investors realize. Let's take a closer look at why these two companies just got a new green flag.

If approved, this vaccine will fuel the company's growth for several years.

Moderna's personalized cancer vaccine, called mRNA-4157, is being studied for a number of different indications, including melanoma, non-small cell lung cancer (NSCLC), colorectal cancer and bladder cancer. Some of these indications, such as melanoma, are in advanced clinical trials, while others are less well established.

But unlike a prophylactic jab against coronavirus infection, the key to this drug candidate is to alert the immune system to interpret the surface characteristics of the patient's tumor cells as a hypochondriac that requires aggressive action. To do this, tumor samples must be collected and analyzed so that the appropriate attributes can be coded into the vaccine. Therefore, even though Goon's vaccine is called "cancer vaccine", it is a treatment, not a preventive measure, for patients with diagnosed cancer.

Head and neck cancers affect approximately 660,000 people worldwide each year. According to Expert Market Research, the market for therapies to treat these cancers is projected to grow to $4.3 billion annually by 2032. The incidence of these cancers appears to be rising over time. Unfortunately, the five-year survival rate for these cancers is only 50%, so effective treatments are urgently needed.

According to data recently presented at Moderna's conference, mRNA-4157 could one day be a valuable tool in a Phase I trial evaluating 22 patients with head and neck cancer. Two patients had a complete response to treatment, four had a partial response, and eight had stabilized their progress. In total, the disease control rate was close to 64%, which is quite good for moderately aggressive cancers. In addition, the treatment does not appear to have caused any serious side effects, so it is likely to move on to the next group of trials.

Notably, mRNA-4157 performed as expected in other Phase I clinical trials, with no major safety incidents. These data build on this evidence and add value to all of the more mature programs in the Personalized Cancer Vaccines subgroup. This also supports one of Moderna's key investment theses in the post-coronavirus vaccine boom era - over the past three years, the company's trailing 12-month revenues have only grown 9% to $6.8 billion.

Keep in mind that head and neck cancer is only one of many targets in the program, and probably not the last one to be approved (if at all). Over the next 10 years, the biotech company will likely acquire one indication after another, expanding the program's addressable market time and time again.

In addition, Moderna intends to initiate new clinical trials for additional indications by the end of the year.

Carrying a name has its rewards.

Clearly, these results bode well for Moderna's stock. Good early results set the stage for the drug candidate to be approved for marketing in a few years when it completes the rest of its clinical trials. But resonance companies will also benefit.

Resonance and Moderna share the costs and profits of the mRNA-4157 project equally, as both companies contribute their own technology and intellectual property. In fact, Keytruda, the best-selling immuno-oncology drug from Moderna, is a key component of most of the personalized cancer vaccine formulations currently being tested. mRNA-4157 is designed to activate the immune system to fight tumors, while Keytruda protects immune system cells from some of the defenses that tumor cells normally have.

Thus, Moderna's good clinical results are also good for resonance companies, and the pair seems to be preparing for more bullish results in the future.

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Alex Carchidi does not own any of the stocks mentioned above.The Motley Fool owns shares of recommended resonance companies.The Motley Fool recommends Moderna.The Motley Fool has a disclosure policy.

1 New Green Flag for Moderna and Merck Stock was originally published by The Motley Fool