Moderna Posts Quarterly Profit Despite Lower Sales From COVID-19 Vaccine

Moderna Inc MRNA shares are trading higher after the company reported fourth-quarter 2023 revenues of $2.81 billion in Spikevax (COVID-19 vaccine), beating the consensus of $2.49 billion.

Net product sales for the fourth quarter of 2023 were $2.8 billion, representing a 43% year-on-year (Y/Y) decline, primarily driven by lower sales volume, partially offset by a higher average selling price.

This led to $6.7 billion in vaccine sales for fiscal 2023, consistent with the previously communicated financial framework of at least $6 billion.

Moderna achieved a 48% cumulative market share in the U.S. retail segment during the fall 2023 COVID season, up from 37% in 2022. 

Moderna reported fourth-quarter EPS of $0.55 compared to the consensus estimate of $(0.97), down from $3.61 a year ago.

Cost of sales came in at $929 million for the fourth quarter, including the charges related to the company’s efforts to scale back manufacturing of its Covid shot and write-downs of unused doses of the vaccine. 

Moderna expects initial regulatory approvals of its RSV vaccine (mRNA-1345) starting in the first half of 2024, with the PDUFA action date for mRNA-1345 on May 12.

The company also plans to launch its RSV vaccine in Australia and Germany in 2024 and other markets in 2025 due to regulatory and tender timing.

Outlook: Moderna reaffirmed its fiscal year 2024 product sales outlook as it enters the second year of the U.S. commercial endemic COVID market with increased clarity of market size and dynamics. 

The company is also prioritizing key international markets for greater commercial focus and is participating in the EU Health Emergency and Response Authority’s tendering procedure for up to 36 million doses of mRNA COVID-19 vaccines per year for up to four years.

The company expects revenue of approximately $4 billion for 2024 from its respiratory franchise, with R&D expenses of approximately $4.5 billion, compared to $4.8 billion in 2023.

Price Action: MRNA shares are up 7.57% at $94.22 on the last check Thursday.

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