Moderna Exceeds Expectations with Strong Financial Results in First Quarter
Biotech company Moderna has reported a narrower-than-expected loss for the first quarter as sales of its Covid-19 vaccine surpassed estimates. The company’s cost-cutting efforts led to a decrease in operating expenses, resulting in better overall financial results.
One of the key highlights for Moderna is the potential launch of its vaccine against respiratory syncytial virus (RSV) in the third quarter, pending U.S. approval on May 12. Following the positive financial results, shares of Moderna rose over 6%.
The company reported revenue of $167 million, far exceeding analysts’ expectations of $97.5 million. Although Moderna saw a significant drop in revenue from its Covid shot, down around 90% compared to the previous year, a substantial portion of its revenue still came from the U.S. and international markets.
Looking ahead, Moderna anticipates achieving full-year 2024 sales of around $4 billion, with revenues from its RSV vaccine included. The company aims to return to sales growth in 2025 and achieve break-even by 2026 through the launch of new products.
Cost of sales for the first quarter decreased significantly, thanks to efforts such as scaling back manufacturing and reducing unused doses of the Covid vaccine. Research and development expenses also saw a 6% decrease, attributed to fewer payments to partners and lower clinical development and manufacturing expenses.
Additionally, selling, general, and administrative expenses fell by 10% in the first quarter, as Moderna invested in digital commercial capabilities and AI technologies to streamline operations. The company’s strong financial performance and optimistic forecast bode well for its future prospects.
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