On Wednesday, shares of Moderna (NASDAQ:MRNA) are up about 14% in pre-market trading after Merck (NYSE:MRK) exercised its option to develop and commercialise a personalised cancer vaccine jointly.

The pact for the vaccine, known as mRNA-4157/V940, was signed in 6 years ago and then amended two years later. Merck will pay Moderna USD 250 million in Q3 after it exercised its option to develop and commercialise personalised cancer vaccine jointly.

The two companies agreed back then to work together on the development and commercialisation of the vaccine, as well as share costs and profits equally.

MD and President of Moderna Stephen Hoge said that the company has been collaborating with Merck on PCVs since 2016, and both have made significant progress in advancing mRNA-4157 as an investigational personalised cancer treatment used in combination with KEYTRUDA.

The two companies also said they’re on track to report Phase 2 trial data for mRNA-4157/V940 in combination with Keytruda for high-risk melanoma patients in the fourth quarter of this year.