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moderna The company on Thursday reported a weaker-than-expected first-quarter loss as cost-cutting efforts took hold and sales of its only commercially available coronavirus vaccine exceeded expectations.
The results come as Moderna inches closer to bringing another desperately needed product to market as demand for coronavirus vaccines plummets worldwide. The biotechnology company expects its vaccine against respiratory syncytial virus to be approved in the United States on May 12th. If approved, the vaccine is expected to be released in the third quarter.
Moderna shares rose more than 6% on Thursday following the results.
Here’s a look at what Moderna reported in the first quarter compared to Wall Street’s expectations, based on a survey of analysts by LSEG.
- Loss per share: Expected loss of $3.07 vs. $3.58
- Revenue: $167 million vs. $97.5 million expected
“Above [operating expenses] Moderna CEO Stéphane Bancel spoke about cost savings Thursday on CNBC’s “Squawk Box,” adding that the biotech company’s team “did a great job in resizing the company.” .
Moderna’s first-quarter sales were $167 million, with revenue from COVID-19 measures down about 90% year over year. The company reported revenue of $1.86 billion in the same period last year.
Moderna CFO Jamie Mock said in an interview with CNBC that about $100 million comes from the U.S. and $67 million comes from international markets, primarily Latin America.
The company said part of the revenue decline was due to an expected shift to the seasonal COVID-19 vaccine market, where patients are typically vaccinated in the fall and winter.
Moderna reported a net loss of $1.18 billion, or $3.07 per share, in the first quarter. In comparison, net income for the same period last year was $79 million, or 19 cents per share.
The company reiterated its full-year 2024 sales forecast of approximately $4 billion, including revenue from the RSV vaccine. Moderna, in particular, expects only $300 million of that revenue to come in the first half of the year, since the season for respiratory viruses typically occurs in the second half of the year.
The second quarter will include part of the company’s recently announced contract to supply 12.5 million coronavirus vaccines with Brazil, executives said on an earnings call Wednesday.
Moderna said it expects sales to return to growth in 2025 and breakeven by 2026 due to new product launches.
For the first quarter, Mock said the company was “more encouraged by the results we’re seeing from a productivity standpoint” than by increased sales of coronavirus vaccines.
Cost of goods sold in the first quarter was $96 million, down 88% from the same period last year. This includes, among other costs, a $30 million writedown on unused COVID-19 vaccines and $27 million in costs related to efforts to downsize its manufacturing footprint.
Research and development expenses in the first quarter were $1.1 billion, down 6% compared to the same period in 2023. This decrease was primarily due to lower partner payments in 2024 and lower clinical development and manufacturing expenses, including lower spending on clinical trials. The company’s new coronavirus, RSV, and seasonal influenza vaccinations.
Meanwhile, selling, general and administrative expenses for the period decreased 10% compared to the first quarter of 2023 to $274 million. Selling, administrative and administrative expenses typically include the costs of advertising, selling, and providing a company’s products and services.
The company said the reduction was due in part to investments in “digital commercial capabilities” and increased focus on using AI technology to streamline operations.
Last month, Moderna announced Through our partnership with OpenAI, a leading artificial intelligence company, we aim to automate nearly every business process for biotech companies.
Mock told CNBC that Moderna has been working with OpenAI for the past year. He added that 60% to 70% of companies now use AI chatbots in their work.
Moderna has so far been successful in boosting investor sentiment about its future direction post-COVID-19. The company’s stock has risen more than 10% this year on growing confidence in its pipeline and Messenger RNA platform, the technology used to combat the coronavirus.
The biotech company currently has 45 products in development, several of which are in late-stage testing. This includes combination therapies targeting the new coronavirus and influenza, which could be approved as early as 2025.
Moderna is also developing a standalone influenza vaccine, a personalized cancer vaccine with Merck, and a latent virus vaccine, among other products.
Correction: Moderna’s first quarter cost of goods sold was $96 million. Previous versions incorrectly listed the time period.
