Moderna reported a narrower-than-expected loss for the first quarter, largely attributed to the company’s cost-cutting initiatives and better-than-anticipated sales of its Covid vaccine, its primary product. The biotech firm is edging closer to introducing another vaccine to the market, a critical move as global demand for Covid shots declines. Anticipating U.S. approval for its vaccine against respiratory syncytial virus on May 12, Moderna aims to launch it in the third quarter.
The company’s first-quarter results exceeded Wall Street’s expectations:
– Loss per share: $3.07 vs. the expected loss of $3.58
– Revenue: $167 million vs. the anticipated $97.5 million
Moderna’s CEO, Stéphane Bancel, emphasized the significant progress in operating expenses, attributing it to the company’s effective cost reduction measures. However, first-quarter revenue from its Covid shot dropped by approximately 90% compared to the same period last year, amounting to $167 million, down from $1.86 billion a year ago.
About $100 million of the revenue came from the U.S., while $67 million was generated from international markets, primarily Latin America. The revenue decline is partly due to the expected shift to a seasonal Covid vaccine market.
Despite the decline in revenue, Moderna remains optimistic, reiterating its full-year 2024 sales guidance of around $4 billion, including revenue from its RSV vaccine. The company anticipates a return to sales growth in 2025 and aims to break even by 2026 with the launch of new products.
Moderna is also focusing on productivity improvements, with cost of sales decreasing by 88% and research and development expenses down by 6% compared to the same period last year. The company has invested in digital commercial capabilities and AI technologies to enhance operational efficiency.
In partnership with OpenAI, Moderna aims to automate various business processes, with 60% to 70% of its workforce already using an AI chatbot for work-related tasks. The company’s shares have seen a positive trajectory this year, reflecting growing confidence in its pipeline and messenger RNA platform, which underpins its Covid vaccine.
With 45 products in development, including a combination shot for Covid and flu, Moderna is poised for further growth and innovation in the coming years.
