Moderna's stock jumped 131% after the company said its experimental cancer treatment succeeded in a late-stage trial, a result that cost short sellers billions. The Phase 3 study compared the therapy against the standard of care, and the company said the treatment met its goals.
The trial that moved the market
The trial was a Phase 3 study, the final stage before a company typically seeks regulatory approval. Moderna said the treatment outperformed the standard of care, but it has not released the full data. The company did not specify which cancer type was studied or how many patients were enrolled.
Investors took the announcement as a major win for Moderna, which is best known for its COVID-19 vaccine. The stock surge added tens of billions of dollars to the company's market value in a single session.
The short sellers' $4.8 billion loss
The sharp rally hit short sellers hard. Traders who had bet against Moderna's stock lost $4.8 billion as the price climbed, according to data compiled by financial analytics firms. The losses were driven by the sheer size of the move — a 131% gain in one day is rare for a large-cap biotech.
Short sellers had been skeptical about Moderna's cancer program, which has yet to produce a commercial product. The trial's success forced many to cover their positions, likely adding to the upward pressure on the stock.
What's still unknown
Moderna has not said when it will release the full trial results or whether it will seek regulatory approval for the treatment. The company also hasn't disclosed the specific cancer indication or the trial's design details beyond the comparison to standard care.
Investors are now waiting for the company's next steps. A regulatory filing would be a major milestone, but no timeline has been announced. The stock's future direction may depend on how quickly Moderna moves to turn the trial success into a marketable therapy.
