- Moderna Inc (NASDAQ; MRNA) shares are trading higher after the company reported a small profit of $0.19 per share, a sharp decline from $8.58 a year ago, despite falling sales.
- Revenue was $1.83 billion compared to $6.07 billion a year ago, beating the consensus of $1.18 billion, mainly due to a decline in COVID-19 vaccine sales.
- The cost of sales reached $792 million, mainly due to inventory write-downs related to excess and obsolete COVID-19 products, unutilized manufacturing capacity, and losses on firm purchase commitments and related cancellation fees.
- R&D expenses increased by 104% to $1.1 billion as the company tries to find a way beyond its only marketed product, the COVID-19 vaccine. Clinical trial-related expenses increased, primarily related to RSV, seasonal flu, and CMV programs.
- Moderna plans to have combination vaccines available by 2025. It expects six major vaccine product launches in the next few years.
- The company estimates respiratory product sales in 2027 of around $8 billion-$15 billion, with an operating profit of $4 billion-$9 billion.
- "It’s going to be a transition year,” CEO Stéphane Bancel told CNBC. He added that Moderna is “investing aggressively to grow the company.”
- Outlook: Moderna has maintained its full-year guidance of around $5 billion in revenue from its COVID vaccine.
- Moderna expects the U.S. to need 100 million vaccine doses annually, and it is in active supply discussions for new orders for the fall of 2023.
- The company is also discussing new contracts with customers in Europe, Japan, and the U.S. Bancel noted that the company is actively discussing those contracts with U.S. government agencies, pharmacy chains, and hospital chains.
- Price Action: MRNA shares are up 2.09% at $132.86 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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