Moderna reported better-than-expected second-quarter revenue but lowered its full-year sales forecast due to anticipated lower sales in Europe and increased competition for respiratory vaccines in the U.S. The biotech firm now expects 2024 product revenue between $3 billion and $3.5 billion, down from a prior estimate of $4 billion. Contributing factors include lower projected sales and potential deferred international revenue into 2025.
Moderna has commenced shipping its newly approved respiratory syncytial virus (RSV) vaccine, mRESVIA, in the U.S., targeting older adults. This follows its successful Covid vaccine launch, although demand for the latter has sharply declined as the pandemic wanes. CEO Stephane Bancel highlighted heightened competition for both RSV and Covid vaccines, noting that mRESVIA entered a market already served by Pfizer and GSK.
Despite near-term challenges, Bancel indicated ongoing negotiations with European governments to secure Covid vaccine supply contracts. However, fiscal constraints and competing agreements, particularly the EU’s pact with Pfizer and BioNTech, complicate these efforts. Economic pressures, including the war in Ukraine, are also affecting government budgets.
Financially, Moderna posted a second-quarter revenue of $241 million, surpassing the expected $132 million but marking a 37% drop from the previous year due to an anticipated move to a seasonal Covid vaccine model. The company reported a net loss of $1.28 billion, or $3.33 per share, which was slightly better than the expected $3.39 per share loss. Cost-cutting measures contributed to the narrower-than-expected loss, with sales costs plummeting 84% year-over-year.
Research and development expenses rose 6% to $1.2 billion, driven by increased personnel costs, while selling, general, and administrative expenses fell 19% to $268 million.
Despite the financial challenges, Moderna’s stock has risen nearly 20% this year, buoyed by confidence in its extensive pipeline and mRNA technology. The company has 45 products in development, including a combination Covid and flu shot and a personalized cancer vaccine with Merck, with some products potentially launching by 2025.
Original Story https://www.cnbc.com/2024/08/01/moderna-mrna-earnings-q2-2024.html
Category :
Tags:
