Moderna reported second-quarter revenue that exceeded expectations but lowered its full-year sales guidance due to factors such as lower sales in Europe and stiff competition in the U.S. respiratory vaccine market. The company now anticipates 2024 product revenue to be between $3 billion to $3.5 billion, down from the previous forecast of $4 billion, causing its shares to drop by 10% in premarket trading on Thursday.
Moderna’s CEO, Stephane Bancel, acknowledged the escalating competition in both the RSV and Covid vaccine sectors. The company recently began shipping doses of its mRESVIA vaccine for respiratory syncytial virus to the U.S. post-approval for older adults. However, the demand for its Covid vaccine has significantly decreased as the world adjusts to the post-pandemic era.
The company is in talks with European governments for Covid vaccine supply, but financial constraints have hindered countries from entering into new contracts. The ongoing conflict in Ukraine has also strained government budgets, impacting Moderna’s sales projections. Nevertheless, Moderna remains optimistic about returning to sales growth by 2025 and achieving breakeven by 2026, with the launch of new products.
In the second quarter, Moderna reported revenue of $241 million, with a decline in Covid shot sales contributing to a 37% decrease from the same period last year. The company attributes this drop to the shift towards a seasonal Covid vaccine market. Despite booking a net loss of $1.28 billion for the quarter, Moderna managed to reduce costs and outperformed Wall Street’s expectations.
The company is making strides in its pipeline and messenger RNA platform, reflecting investor confidence. With 45 products in development and five in late-stage trials, Moderna is looking ahead to potential successes, including a combination shot for Covid and the flu, a stand-alone flu vaccine, a personalized cancer vaccine in collaboration with Merck, and treatments for latent viruses.
Overall, Moderna’s recent financial reports and strategic outlook suggest a challenging yet promising future for the biotech company. The competitive landscape, shifting market dynamics, and ongoing product development efforts all pose as key factors that will shape Moderna’s trajectory in the coming years.
