Covid vaccine sales beat estimates and Moderna lost less than expected

CNBC

Moderna on Thursday posted a narrower-than-expected loss for the first quarter as the company’s cost-cutting efforts took hold and sales of its Covid vaccine, its only commercially available product, topped estimates.
The biotech company expects U.S. approval for its vaccine against respiratory syncytial virus on May 12.
Moderna booked first-quarter sales of $167 million, with revenue from its Covid shot dropping roughly 90% from the same period a year ago.
The company said the revenue decline came in part from an expected transition to a seasonal Covid vaccine market, where patients typically take their shots in the fall and winter.
The company reiterated its full-year 2024 sales guidance of roughly $4 billion, which includes revenue from its RSV vaccine.
For the first quarter, Mock said the company is “more encouraged by what we’re seeing from a productivity perspective” than the higher sales of its Covid vaccine.
Cost of sales was $96 million for the first quarter, down 88% from the same period a year ago.
That decline was primarily due to fewer payments to partners in 2024 and lower clinical development and manufacturing expenses, including decreased spending on clinical trials for the company’s Covid, RSV and seasonal flu shots.

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Moderna’s first-quarter loss narrowed more than anticipated on Thursday as the company’s cost-cutting measures paid off and sales of its sole commercially available product, the Covid vaccine, exceeded forecasts.

The outcomes coincide with Moderna’s increasing proximity to launching a new product, which it desperately needs given the global decline in demand for Covid shots. The biotech business anticipates U.S. s. approval on May 12 for its respiratory syncytial virus vaccine. That shot should launch in the third quarter if it is cleared.

Based on an LSEG analyst survey, the following represents a comparison between Moderna’s first-quarter results and Wall Street’s expectations:.

Per-share loss: $3.07 in comparison to. $3.58 less than anticipated.

Sales: $167 million in comparison. $97.55 million is anticipated.

Regarding the cost reductions, Moderna CEO Stéphane Bancel stated on CNBC’s “Squawk Box” on Thursday that “on the [operating expenses] side of a company, we’ve made great progress.”. The team at the biotech company, he continued, “has done a great job resizing the company.”. “.”.

With sales from its Covid shot down nearly 90% from the same period last year, Moderna reported $167 million in first-quarter revenue. Over the same period last year, the company brought in $1.86 billion.

100 million or so came from the U.S. S. According to Moderna CFO Jamey Mock, in an interview with CNBC, $67 million came from overseas markets, mostly in Latin America.

The company stated that the anticipated shift to a seasonal Covid vaccine market, where patients normally receive their shots in the fall and winter, was a contributing factor in the revenue decline.

With respect to the first quarter, Moderna reported a net loss of $1.18 billion, or $3.07 per share. The net income from the same period last year was $79 million, or 19 cents per share, in comparison.

The business restated its forecast for total sales in 2024, which includes income from its RSV vaccine and is expected to be around $4 billion. It’s worth noting that Moderna projects that just $300 million of those sales will occur in the first half of the year, as respiratory virus season usually occurs in the second half.

It has been stated by Moderna that with the introduction of new products, it anticipates growing sales again in 2025 and breaking even by 2026.

More than the increased sales of its Covid vaccine, Mock stated that the company is “more encouraged by what we’re seeing from a productivity perspective” for the first quarter.

The first quarter’s cost of sales was $96 million, which represents an 88 percent decrease from the same time last year. This comprises, among other expenses, $30 million in write-downs of Covid vaccine doses that were not used and $27 million in charges associated with the company’s attempts to reduce its manufacturing footprint.

Compared to the same period in 2023, research and development expenses for the first quarter dropped by 6% to $1.11 billion. Less money was paid to partners in 2024, and clinical development and manufacturing costs—including less money spent on the company’s Covid, RSV, and seasonal flu shots—were the main causes of that decline.

According to the company, part of the decrease can be attributed to its investments in “digital commercial capabilities” and heightened emphasis on leveraging AI technologies for optimizing operations.

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