Episode summary
Moderna and Merck Revive mRNA Hopes With Melanoma Success | Bloomberg Intelligence
Bloomberg Intelligence
· · 23 min · Hosts: Paul Sweeney, Judy Lagrou · Guests: Sam Fazeli, Deborah Aitken, Craig Trudell, Lindsay Dutch
Summary
Moderna and Merck’s melanoma vaccine update was the day’s biggest market mover, with the host saying the stock reaction reflected renewed enthusiasm for mRNA after the trial met its main goal. The analyst explained that the personalized vaccine is built from mutations found in a patient’s tumor after surgery, then paired with Merck’s Keytruda to help prevent recurrence. He said the result is promising but still early, and cautioned that broader use in other cancers will take more evidence.
On consumer companies, Estee Lauder’s results were read as an early proof point that its multi-year recovery plan is gaining traction. The analyst pointed to better-than-expected constant-currency growth, improving margins, and savings tied to restructuring, including job cuts and cost reductions. She said travel retail and stronger beauty demand in parts of Asia and the U.S. are helping offset pressure elsewhere.
Target and Lowe’s offered a more mixed read on the U.S. consumer. Target’s turnaround is being supported by a new management strategy and a stronger push into value and groceries, while Lowe’s showed how weak housing turnover and selective spending are weighing on home improvement. The analyst said consumers remain focused on price, and that tariff refunds and promotion timing are influencing who gains share.
Key takeaways
- The analyst said Moderna and Merck’s melanoma data could justify a major move, but broader cancer use remains unproven.
- The analyst said Estee Lauder’s restructuring is starting to show up in margins, sales, and earnings guidance.
- The host and analyst said Target’s recovery depends on whether new management can sustain momentum through the back half of the year.
- The analyst said Lowe’s weaker quarter reflected a selective DIY consumer and share loss during July promotions.
- The analyst said tariff refunds are now an important factor in how home-improvement retailers compete on price.
Notable quotes
“this mRNA technology came to the four Sam Fiselli had to explain it to us like a million times because we didn't really get it”
“these are the days that I live for, right? When something goes right, even though I was really worried about this trial reading out”
“So, it's a personalized new antigen therapy, int. So, individualized new antigen therapy”
“I wouldn't be surprised if it comes back at I don't know three four $500,000 a year”
“I think that this is the first time that we get a clear indication and confidence that the uh profit recovery growth program”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube. when we were in the early early days of the pandemic and we were just it was like early 2021 and this we were starting to get some vaccine discussions and this mRNA technology came to the four Sam Fiselli had to explain it to us like a million times because we didn't really get it but he was saying it's going to be really helpful in delivering a corona virus vaccine he was right and he said don't sleep on this thing because you can use the same technology for different therapies for different parts and different things and things like Here you go today with this news with uh hooking up with Merc on a cancer uh drug.
The stock's up 130%. I mean, this isn't an over-thec counter pink sheet penny stock. This is a 25 billion market cap.
That's now 50 billion market cap in one day. Sam Fazelli joins us here. He is the chief go-to research analyst at Bloomberg Intelligence for all things healthcare.
Sam, talk to us about this what Mona and Merc are doing today. What's kind of the science behind it? Yeah, I mean Paul just to say this is these are the days that I live for, right?
When something goes right, even though I was really worried about this trial reading out, which is what this trial is taking some mutations, identify mutations in the tumors of patients who've had them removed. So you have melanoma, you're lucky enough to have been caught early, you do surgery, you debulk the tumor, you use that in their labs and their AI systems, etc.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- mrna vaccines
- biotech earnings
- luxury goods earnings
- retail earnings
- housing market outlook
Companies and tickers mentioned
- MRNA
- MRK
- EL
- TGT
- LOW
- Moderna
- Merck & Co.
- Estée Lauder
- Target
- Lowe's
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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