BUZZ-Moderna shares extend losses as analysts question valuations after cancer vaccine data

October 23 - ** Shares of pharmaceutical company Moderna MRNA.O fell 4.7% in pre-market trading to $193.02, extending Thursday’s decline

** The stock closed down 17.57% on Thursday at $202.63, wiping out about $17.2 billion in market value after months of gains

** Earlier, the results of a late-stage melanoma clinical trial were inadvertently released on an oncology website, prompting the company and its partner Merck MRK.N to publish the full details of the trial (link)

** Data showed that, compared to using Keytruda alone, the experimental vaccine intismeran combined with Keytruda reduced the risk of death or recurrence from melanoma by 42%, and lowered the risk of cancer spreading by 38%

** Several Wall Street analysts said ahead of the meeting that investors were hoping the combination therapy would lower the risk of recurrence by 40% or more

** RBC analyst Luca Issi called the data “clearly impressive,” but noted the benefit was numerically lower than interim results, adding that despite the share price pullback, it is still “difficult to justify the company’s $81 billion valuation”

** Morningstar analysts said, “The share price rose too much after the initial results in August”

** As of Thursday’s close, MRNA had risen 587% so far this year, mainly due to the surge after the August preliminary results; the day before that announcement, the stock traded around $63

(To assist non-native English speakers, Reuters has automated the translation of its report into several other languages. Because automated translations may contain errors or lack necessary context, Reuters does not guarantee the accuracy of the automated text and provides it solely for the convenience of readers. Reuters accepts no responsibility for any damage or loss caused by the use of automated translation.)