Moderna's quarterly revenue beats estimates despite sharp decline in COVID vaccine sales

Moderna quarterly earnings: Pharma major Moderna posted its quarterly financial results on Thursday, surpassing Wall Street's revenue expectations but revealing a stark decline compared to the previous year's figures, which were inflated due to heightened demand for COVID-19 vaccines.

The firm's sales of its COVID-19 vaccine Spikevax, its sole marketed product, witnessed a substantial drop of 91 per cent from the previous year, amounting to $167 million for the quarter. However, this figure outpaced analysts' projections of $97.5 million.

Despite the decline in COVID-19 vaccine revenue, Moderna remains optimistic about its future prospects. The Cambridge, Massachusetts-based company reiterated its anticipation of receiving regulatory approval for its respiratory syncytial virus (RSV) vaccine, which is slated to be incorporated into the upcoming U.S. vaccine campaign this fall.

Moderna is gearing up to enter the RSV vaccine market, where it will compete with established players like Pfizer and GSK, who currently dominate two-thirds of the new RSV vaccine market with Arexvy.

Moreover, Moderna reported a narrower-than-expected loss of $3.07 per share, surpassing analysts' estimates of a quarterly loss of $3.58 per share.

Despite these positive aspects, Moderna's shares experienced a 1.5 per cent decline in premarket trading following the earnings release.

James Mock, Moderna's Chief Financial Officer, expressed encouragement over the company's performance but acknowledged that the first-quarter revenue represented only a small fraction of the total annual revenue, with 90 per cent expected to materialise in the second half of the year.

Moderna reiterated its 2024 sales forecast of $4 billion, marking a significant decrease compared to previous years since the emergency authorisation of its COVID vaccine in late 2020.

Analysts foresee Moderna's COVID-19 vaccine generating $3.73 billion in 2024 sales and anticipate its RSV vaccine to contribute $166.67 million to the company's revenue. However, their estimates for total 2024 sales stand slightly higher at $4.18 billion.

The first-quarter revenue breakdown included $100 million from U.S. sales and $67 million from the rest of the world, with a notable contribution from Latin American markets.

Moderna's focus on diversifying its vaccine portfolio beyond COVID-19 was evident, as it disclosed intentions to seek regulatory approval for its flu vaccine later this year.

The quarter's cost of sales amounted to $96 million, inclusive of manufacturing wind-down costs totaling $27 million. The company had previously initiated discussions with its global partners involved in filling vials and syringes with its mRNA-based COVID vaccines to rationalise production, a process that is now nearing completion.

(With Reuters inputs.)