May 3rd 2024.
Moderna made a big announcement recently - their stock price has gone up! This is thanks to their successful sales of the COVID-19 vaccine in the first quarter. But that's not all, the biotech company has even more exciting news to share. They are planning to launch a new product very soon. This comes at a time when the demand for COVID-19 vaccines is decreasing globally.
The company is expecting to receive approval for their RSV (respiratory syncytial virus) vaccine in the United States on May 12th. If everything goes according to plan, the vaccine will be available in the third quarter. The positive results from the first quarter have caused a surge in Moderna's shares, with a 6% increase on May 2nd.
The sales numbers have exceeded Wall Street's expectations, with a total of $167 million in revenue. This is a massive increase from the same time period in 2023, although there has been a significant drop in revenue from the COVID-19 vaccine. However, for the entire year of 2023, Moderna's revenue was $1.86 billion. This is a great achievement for the company, especially after implementing cost-cutting measures. Moderna's CEO, Stéphane Bancel, expressed his satisfaction with the company's performance during an interview on CNBC's Squawk Box. He mentioned the great progress they have made on the operating expenses side and praised the team for resizing the company.
Jamey Mock, the company's CFO, provided a breakdown of the revenue's regional origins. A significant portion, nearly $100 million, came from the U.S., while $67 million came from international markets such as Latin America. Moderna has also secured a contract with Brazil, and the second-quarter reports will reflect this partnership as they will be supplying 12.5 million COVID-19 vaccines.
The decline in revenue can be attributed to the shift towards a seasonal trend for COVID-19 vaccines, with more people getting vaccinated during the fall and winter months. However, there is still some good news. According to Quartz, Moderna's net loss of $1.18 billion, equivalent to $3.07 per share, is better than the estimated net loss of $1.4 billion by the FactSet consensus. Mock also mentioned that they are pleased with the productivity they have seen in the first quarter, even though the sales of the COVID-19 vaccine were higher. They are hoping for an increase in sales after the launch of the RSV vaccine and are determined to continue their success in the fall COVID-19 market.
Moderna's CEO, Bancel, expressed his excitement about the company's achievements, stating that this is just the beginning. He believes that 2025 will be a significant year for their vaccine platform, with an increase in sales growth and a break-even point in 2026. This will be made possible by the launch of new products and an update of their current ones. The company has also announced a new and improved version of the COVID-19 vaccine, called mRNA-1283, which has shown a more robust immune response in its phase-3 clinical trials. Moderna is determined to continue advancing their mRNA medicines for the benefit of patients.
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