Moderna plans $4 billion to $4.5 billion in 2027-2030 spending, led by oncology

Merck KGaA raises full-year guidance after third-quarter beat; analysts eye 2027

Moderna expects to spend about $4 billion to $4.5 billion from 2027 through 2030, with the cash costs driven primarily by plans to increase its investments in oncology, the company said. Moderna said it sees intismeran, its personalized melanoma vaccine, as well as cancer antigen therapies as foundational opportunities for a growing oncology franchise.

The company said it is working with partner Merck toward commercializing intismeran in the U.S. Moderna has a facility in Massachusetts that is purpose-built for intismeran and on track to support a potential commercial launch, the company said.

In a separate note, Moderna said it expects to improve profitability in its infectious-disease vaccine business, helped by continued revenue growth and lower development spending as some clinical studies wrap up. Efforts to boost manufacturing efficiency should also help profits, the company said.

Moderna said it plans to fund future infectious-disease vaccine investments through growth in the franchise, while deploying capital on its balance sheet toward intismeran, cancer antigen therapies, rare diseases and emerging modalities.

Germany’s Merck KGaA reported strong third-quarter results, with underlying earnings ahead of estimates and sales better than anticipated across all businesses, analysts at J.P. Morgan said in a research note. The German life-science and chemical group also raised its full-year guidance. While a guidance increase was expected, J.P. Morgan said Merck’s new outlook should trigger upgrades to consensus expectations for adjusted earnings. “Overall, we expect the strong results and guidance raise to be well received by the market,” the analysts said. Shares rose 2.1%.

Jefferies analysts said Merck KGaA beat consensus expectations for the third quarter mainly due to the strength of its life-sciences and electronics businesses, but order trends point to a normalization in life-sciences sales growth this quarter. Customers expanding capacity helped the life-science business report a 6.1% increase in third-quarter organic sales, though the unit’s order book suggests fourth-quarter performance will be weaker, the analysts said. Demand for semiconductor materials drove growth at Merck’s electronics business, and the group’s healthcare unit remained resilient despite generic competition for its Mavenclad multiple-sclerosis drug, Jefferies said. Shares were up 2.2%.

UBS analysts said Merck KGaA raised its full-year guidance again but that its outlook for 2027 seems more challenging. The analysts cited accelerating generic competition for the multiple-sclerosis drug Mavenclad, potential competition for its Ogsiveo medicine for desmoid tumors and more normalized growth in its life-science segment as factors that could all make 2027 a tougher year. Merck KGaA flagged a fourth-quarter slowdown in the bioprocess business within its life-sciences division due to a weakening order book, but that should be well understood by investors, UBS said. The 2026 guidance raise mostly reflects improved underlying momentum, but also favorable currency changes, the analysts added. Shares rose 2.4%.

Bank of America analysts said the question on investors’ minds is whether Merck’s strength can continue into next year. It is possible for the German conglomerate to keep up earnings momentum in 2027, the analysts said, with the swing factor being whether the strong performance of its businesses that supply lab products and services to drugmakers and materials to semiconductor companies can be sustained. Bank of America forecasts annual growth of around 12% in Merck’s adjusted earnings per share over the 2027-2030 period. Shares rose 1.7%.

Berenberg, in a separate research note, said underlying growth at Sartorius, a German life-science company, is accelerating and sentiment on the company has been bullish overall. “We sense rising interest from long-only investors as management continues to deliver on guidance and rebuild credibility with the market,” the analysts wrote. Berenberg raised its price target on Sartorius to 340 euros from 280 euros. Shares traded 0.4% lower at 228.00 euros.

Berenberg said it expects further sales growth in 2027. Sartorius should benefit from a continued recovery in equipment demand, improving biopharma end-markets, biotech funding increasingly translating into demand, and further integration of AI into drug discovery supporting volumes in lab products and services, the analysts said.