USA — Moderna, the pioneering biotech company behind the COVID-19 vaccine Spikevax, has announced its third-quarter financial results, which show a drop in revenues from US$3.4 billion in the same period last year to US$1.8 billion.
However, this figure still surpasses the US$1.4 billion anticipated by analysts. The decline is attributed to reduced sales of the COVID-19 vaccine.
The quarter also saw Moderna record a net loss of US$3.6 billion. This loss was primarily due to charges of US$3.1 billion related to the resizing of its manufacturing capacity and tax allowances.
In stark contrast, the same period in the previous year had seen the company post a net income of US$1 billion.
Commenting on the results, Moderna’s CEO, Stéphane Bancel, noted the company’s increased market share in the US, stating, “We demonstrated our ability to increase share in the US market, and we now expect this year’s vaccination rate to be similar to last fall.”
Bancel added that they had significantly resized their manufacturing infrastructure with a focus on making their COVID-19 franchise profitable for 2024 and beyond.
Moderna reported that its COVID vaccine has garnered 45% of the US market share this fall, a notable increase from the 36% share it had in 2022.
Despite a later launch, this year’s fall vaccinations in US retail pharmacies are tracking similarly to the 2022 season.
Moderna expects the US market for this fall to reach at least 50 million doses, supporting a minimum of US$6 billion in total Spikevax sales for the year. This aligns with the company’s previous sales projection of between US$6 billion and US$8 billion for 2023.
In terms of research and development (R&D) spending, Moderna anticipates an increase to US$4.8 billion for the full year 2023, up from the initial prediction of US$4.5 billion.
Looking ahead to 2024, Moderna remains committed to launching its respiratory syncytial virus (RSV) vaccine mRNA-1345.
The company has submitted marketing authorization applications globally for this vaccine, designed to prevent RSV-associated lower respiratory tract disease and acute respiratory disease in adults aged 60 and older.
Moderna foresees approximately US$4 billion in sales in 2024, primarily in the second half, driven by global COVID vaccine sales and the launch of its RSV vaccine.
The company expects to resume organic sales growth in 2025, with R&D expenses projected at around US$4.5 billion in 2024 and a flat downward trend in 2025.
Chief Financial Officer Jamey Mock emphasized the need to adjust the company’s infrastructure, particularly as the pandemic recedes.
Moderna is actively renegotiating the size and scope of its partnerships to enhance operational predictability and reduce costs. Mock explained that these adjustments to the manufacturing footprint would ultimately lead to cost savings.
Analysts from Bloomberg Intelligence highlighted that Moderna’s earnings reflect a decline in COVID vaccine uptake and expressed concerns that the sales forecast for the next year might lead to widened losses.
Jefferies analyst Michael Yee regarded Moderna’s predictions as reasonable, estimating that the number of COVID vaccine doses administered in the US would reach 35 million to 40 million, falling short of Moderna’s minimum forecast of 50 million doses.
On a different note, Deutsche Bank analysts downgraded Moderna’s stock, raising concerns about the lower sales outlook for the next year and the company’s plan to increase R&D spending.
They pointed out that the expanding infrastructure leaves very little room for error, highlighting the challenges that lie ahead.
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