Moderna, the biotech company known for its Covid vaccine, has surprised investors by posting a quarterly profit despite a slump in vaccine sales. The company’s earnings per share came in at 55 cents, compared to the expected loss of 97 cents. Additionally, Moderna reported revenue of $2.81 billion, surpassing the estimated $2.50 billion.
The decline in Covid vaccine sales was a result of lower vaccine volumes, although it was partially offset by a higher average selling price. Moderna’s net income for the fourth quarter was $217 million, a decrease from $1.47 billion reported during the same period the previous year.
One notable factor contributing to Moderna’s financial performance was the $600 million in deferred revenue related to its collaboration with Gavi, a global vaccine organization. However, the company’s CFO, Jamey Mock, downplayed the significance of this deferred revenue, stating that it was “just pure accounting” and not the main reason for beating earnings expectations.
Instead, Mock highlighted the lower-than-expected cost of sales as one of the main factors behind Moderna’s positive results. The cost of sales for the fourth quarter was $929 million, and for the full year, it amounted to $4.69 billion. These figures include expenses related to scaling back manufacturing of the Covid vaccine and write-downs of unused doses.
Moderna reiterated its full-year 2024 sales guidance of approximately $4 billion, which takes into account revenue from its vaccine against respiratory syncytial virus (RSV). The company expects FDA approval for this vaccine in April. In terms of expenses, Moderna plans to reduce research and development costs to $4.5 billion in 2024, down from $4.8 billion in 2023.
Despite the challenges faced in 2023, including a loss of $4.7 billion compared to a profit of $8.4 billion the previous year, Moderna remains optimistic about its future. The company currently has 45 products in development, with nine in late-stage trials. These include a combination shot targeting both Covid and the flu, as well as a personalized cancer vaccine developed in collaboration with Merck.
Moderna anticipates returning to sales growth in 2025 and breaking even by 2026 with the launch of new products. The company’s long-term goals align with its commitment to innovation and advancing medical research.
Overall, Moderna’s surprise quarterly profit demonstrates its resilience and ability to adapt to changing market conditions. Despite the decline in Covid vaccine sales, the company remains focused on its pipeline of promising products and looks forward to a brighter future in the healthcare industry.
