Moderna posts  US$ 1.2 billion net loss in Q1 2024 amid vaccine sales decline

USA – Moderna Inc., a pioneering force in mRNA medicine, grappled with significant financial setbacks in the first quarter of 2024, reporting a staggering net loss of US$ 1.2 billion.

This sharp downturn marks a striking contrast to the US$ 79 million net income recorded in Q1 2023, underscoring the company’s financial volatility in the wake of shifting market dynamics.

The company’s diluted loss per share amounted to US$3.07, a stark deviation from the earnings per share of US$0.19 for the corresponding period the previous year. 

Notably, total revenue plummeted to US$167 million, representing a drastic decline from US$1.9 billion in Q1 2023, primarily attributed to diminished sales of its COVID-19 vaccine.

“Our first-quarter financial performance reflects the evolving landscape of the vaccine market, particularly as we navigate the transition to a seasonal COVID-19 vaccine market,” stated Stéphane Bancel, Chief Executive Officer of Moderna, addressing the company’s challenging financial outlook.

The decline in net product sales was particularly stark, plummeting by 91% compared to Q1 2023, aligning with the anticipated shift to a seasonal market for COVID-19 vaccines. 

This decline, exacerbated by revenue recognition from doses deferred in 2022, underscores the volatile nature of pandemic-driven markets.

Cost of sales in Q1 2024 amounted to US$96 million, reflecting an 88% decrease from Q1 2023. 

This decline encompassed various expenses, including third-party royalties, inventory write-downs, and costs related to unutilized manufacturing capacity and wind-down expenditures.

Despite these financial challenges, Moderna remains steadfast in its full-year 2024 guidance, reaffirming anticipated revenue of US$ 4 billion from its respiratory franchise. 

The company also maintains its commitment to advancing its pipeline, with a particular focus on the launches of its Spikevax 2024-2025 formula and RSV vaccine.

“As we anticipate the launches of our Spikevax 2024-2025 formula and RSV vaccine, we are exercising financial discipline and have intensified our focus on building and utilizing AI technologies to further streamline operations and enhance productivity,” affirmed Bancel, highlighting the company’s strategic priorities amid financial turbulence.

Moderna’s financial turbulence in Q1 2024 coincides with strategic shifts and advancements in its vaccine and therapeutics portfolio. 

Noteworthy milestones include the initiation of three new clinical studies evaluating Moderna’s investigational individualized neoantigen therapy in combination with Merck’s Keytruda® for the treatment of various cancers, signaling the company’s unwavering commitment to innovation and medical breakthroughs.

Furthermore, Moderna continues to progress its late-stage pipeline, with several vaccine programs advancing toward pivotal studies. 

Notable developments include the ongoing Phase 2/3 clinical trial of its RSV vaccine candidate (mRNA-1345) and positive interim results from the NEXTCove Phase 3 trial of its next-generation COVID-19 vaccine (mRNA-1283), highlighting the company’s relentless pursuit of scientific excellence and therapeutic innovation.

Despite financial headwinds and market challenges, Moderna remains steadfast in its mission to revolutionize medicine through mRNA technology, demonstrating resilience and adaptability in the face of adversity. 

As the company navigates a dynamic healthcare landscape, its commitment to advancing mRNA medicines for the betterment of human health remains unwavering.