Without divulging how much it earned on the transaction, Merck said it achieved a “substantial” gain on its direct holding over the life of the investment, particularly in 2020, given the “substantial appreciation” in Moderna’s stock price. It said it will retain exposure to the vaccine maker indirectly through its investment in venture funds.

Moderna went public in December 2018 at a price of $23 per share. At the beginning of December 2020 the price was $142. The advisory committee of the US Food and Drug Administration (FDA) is scheduled to review the company’s EUA application on Dec. 17.

The New Jersey-based drugmaker made its first direct investment in the fledgling biotech in 2015, worth $100 million in cash and stock. It added a further $125 million in 2018, reflecting an expanded research collaboration.

Merck and Moderna plan to continue to collaborate on the development of personalized cancer vaccines as well as an mRNA-5671 cancer vaccine that encodes the four most common KRAS mutations. This vaccine is currently in Phase 1 trials, both as a solo treatment and in combination with Merck’s immuno-oncology blockbuster Keytruda.

The drugs giant is participating in Covid-19 vaccine development in another indirect way. In July, it acquired privately held Swiss biotech Themis and gained access to a potential vaccine developed by Themis and its partner, Institut Pasteur. This candidate, V591, uses a measles virus vaccine vector to deliver antigens that spark an immune response to the new coronavirus.  Merck is also working on another Covid candidate, V590, based on a recombinant vesicular stomatitis virus platform.

Author: Dede Williams, Freelance Journalist