Tag Archives: MRK

Market Surge: AI Storage Demand Ignites Record Highs While Intel and Moderna Soar on Strategic Breakthroughs

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The global storage market is entering a powerful new “super-cycle” driven by surging demand for AI chips and supply shortages. On Wednesday, the U.S. storage sector erupted once again. SanDisk Corp (SNDK) skyrocketed 10.63% in a single day, hitting a new all-time high. Micron Technology (MU) rose 6.61%, also refreshing its historical record. Shares of Western Digital (WDC) and Seagate Technology (STX.) followed suit, surging 8.49% and 5.6%, respectively. Analysts pointed out that while HDDs are slower than SSDs, the massive capacity requirements of AI infrastructure are benefiting the entire storage field.

The core driver of this rally stems from Wall Street’s recalibration of valuations for storage giants. Several brokerages raised price targets for SanDisk and Micron, citing robust demand for enterprise-grade SSDs and tight NAND flash supply as key factors driving up product prices. Analysts generally believe that the hunger for high-performance storage in AI infrastructure, combined with the “production-cut-to-support-prices” strategy of major manufacturers, has led to a fundamental reversal in market supply and demand. As chip giants reduce output to maximize profits and spot prices see multi-fold increases, investors are betting that the industry is shifting from traditional cyclical volatility toward a “high-margin, stable-price” foundry-like model. Under a severe supply gap, the upward trend in storage chip prices is widely expected to intensify throughout 2026.

BofA Securities believes the memory chip industry is undergoing a profound transformation, exhibiting “foundry-like” characteristics with reduced cyclicity and improved margins. Supported by strong guidance from upstream players like TSMC and consistent growth in South Korean semiconductor export data, the market consensus is that the storage industry has entered a margin-centric “super-cycle.” Despite the short-term risk of high valuations, the long-term process of value re-rating continues.

Winning a Major U.S. Military Contract! Intel (INTC) Jumps Nearly 12% to Highest Level Since May 2021 Ahead of Q4 Earnings

On January 20, as reported by wccftech, Intel’s new Vice President of Government Technology, James Chew, announced that the company is now a participant in the “Scalable Homeland Innovation Enterprise Layered Defense” (SHIELD) program. Intel will serve as a chip supplier under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The project, valued at up to $151 billion, is considered one of the most ambitious initiatives of the U.S. Department of War.

Additionally, Intel is scheduled to release its Q4 2025 earnings after the market closes on January 22. Investor optimism regarding the report has reached a multi-quarter peak, with bets that CEO Lip-Bu Tan’s promised transformation plan is yielding results. Meanwhile, large-scale data center expansions are driving strong demand for Intel’s traditional server chips. According to data compiled by LSEG, Intel’s fourth-quarter data center revenue is expected to surge by over 30%, reaching $4.43 billion.

Fuelled by this optimism, several investment banks recently raised their price targets for Intel. Citigroup upgraded the stock from “Sell” to “Neutral” and raised its target from $29 to $50. Barclays increased its target from $35 to $45, while Susquehanna raised its target from $40 to $45.

Breakthrough Clinical Data for mRNA Cancer Vaccine: Moderna (MRNA) Surges Nearly 16% as Death Risk Halves

Moderna (MRNA) and Merck & Co. (MRK) released median five-year follow-up data from the Phase 2b KEYNOTE-942/mRNA-4157-P201 study. The study evaluates the efficacy and safety of the investigational mRNA individualized neoantigen therapy, intismeran autogene (mRNA-4157 or V940), in combination with the PD-1 inhibitor Keytruda (pembrolizumab) in patients with high-risk melanoma (Stage III/IV) following complete surgical resection. The analysis showed that at the five-year median follow-up, the combination therapy reduced the risk of recurrence or death by nearly half compared to Keytruda alone. According to the press release, eight Phase 2 and Phase 3 clinical trials are currently underway for this combination therapy across various tumor types, including melanoma, non-small cell lung cancer (NSCLC), bladder cancer, and renal cell carcinoma.

In this pre-specified analysis, the combination therapy showed durable and clinically meaningful improvement in the primary endpoint of recurrence-free survival (RFS), reducing the risk of recurrence or death by 49%. The safety profile remained consistent with earlier reports. Moderna and Merck plan to present further data from the follow-up analysis at an upcoming medical conference.

Intismeran autogene is an individualized neoantigen therapy (INT) consisting of a single synthetic mRNA molecule encoding up to 34 neoantigens. These neoantigens are designed using an algorithm based on the unique DNA sequence mutational signature of each patient’s tumor. Once injected, the mRNA sequences are translated into proteins that stimulate a T-cell anti-tumor response through antigen presentation. Based on the KEYNOTE-942 data, the U.S. FDA and the European Medicines Agency (EMA) granted the combination Breakthrough Therapy Designation (BTD) and PRIME status, respectively, for the adjuvant treatment of patients with high-risk melanoma following complete resection.

Currently, the mRNA-4157 indications for melanoma and NSCLC have advanced to Phase 3 clinical trials, putting it on track to potentially become the first marketed mRNA cancer vaccine.

Cancer Drug Developer RVMD Surges Overnight on Rumors of Merck Acquisition Talks; Deal Could Reach $32 Billion

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According to reports, Merck & Co. (MRK) is in discussions to acquire Revolution Medicines (RVMD), a biotechnology company focused on oncology. Sources familiar with the matter indicate that the transaction price being discussed is between $28 billion and $32 billion. If finalized, this would represent one of the largest deals in the pharmaceutical industry since Pfizer’s ($PFE.US) $43 billion acquisition of Seagen in late 2023.

Boosted by the news, Revolution Medicines saw its shares surge over 13% in Thursday’s U.S. overnight trading session as of press time.

Notably, reports on Wednesday suggested that AbbVie (ABBV) was in “advanced” talks to acquire Revolution Medicines, potentially valuing the pre-commercial company at over $20 billion. However, AbbVie subsequently responded that it was not in negotiations to acquire the firm.

Key Asset: Daraxonrasib (RMC-6236)

The cornerstone of Revolution Medicines’ portfolio is Daraxonrasib (RMC-6236), a cutting-edge, oral, direct-acting RAS(ON) multi-selective inhibitor. Designed to treat cancers driven by RAS gene mutations, the drug works by directly binding to the active state of the RAS protein. This blocks its interaction with downstream signaling proteins, thereby inhibiting the continuous activation of the RAS pathway and slowing the growth and proliferation of tumor cells.

Daraxonrasib targets common oncogenic RAS mutations, including G12X, G13X, and Q61X, which are critical drivers in major malignancies such as:

  • Pancreatic Ductal Adenocarcinoma (PDAC)
  • Non-Small Cell Lung Cancer (NSCLC)
  • Colorectal Cancer (CRC)

Currently, Daraxonrasib is being evaluated in four global Phase 3 clinical trials, including three focused on PDAC and one on locally advanced or metastatic RAS-mutant NSCLC. Top-line results from key studies are expected to be released this summer.

Clinical Milestones and Market Potential

In December of last year, Revolution Medicines announced the enrollment of the first patient in the RASolute 304 trial. This global, open-label, Phase 3 study evaluates the safety and efficacy of Daraxonrasib in patients with resectable PDAC who have completed surgery and chemotherapy. The trial aims to enroll approximately 500 patients to determine if the drug can improve disease-free survival compared to observation alone.

Industry research suggests that, driven by Daraxonrasib, the pancreatic cancer drug market could expand tenfold to over $3 billion by 2035. Last October, the FDA selected Daraxonrasib for a new pilot program designed to accelerate the approval of promising drugs. Analysts expect the drug could receive market approval as early as 2026.

Strategic Significance for Merck

M&A activity in the pharmaceutical sector typically intensifies in January, coinciding with the annual J.P. Morgan Healthcare Conference in San Francisco, a known catalyst for deal-making. Analysts Javier Manso Polo and Sam Fazeli noted that while Revolution’s pipeline is highly attractive, any deal would carry execution risks and a significant valuation premium.

For Merck, the acquisition would be a strategic move to bolster its pipeline as its blockbuster immunotherapy, Keytruda, nears patent expiration at the end of this decade. Since 2021, Merck has nearly tripled its late-stage pipeline through internal development and major deals—such as the $11.5 billion acquisition of Acceleron. Acquiring Revolution Medicines would secure Merck the rights to the highly anticipated Daraxonrasib.