In the second quarter of 2024, Moderna reported revenue that exceeded expectations, but the company lowered its full-year sales guidance due to factors such as lower sales in Europe, a competitive environment for respiratory vaccines in the U.S., and the potential for deferred international revenue until 2025. The company now expects 2024 product revenue to be between $3 billion to $3.5 billion, down from a previous estimate of $4 billion. This news caused Moderna’s shares to fall 10% in premarket trading. The company has started shipping doses of its vaccine for respiratory syncytial virus, mRESVIA, in the U.S., following its approval in May for older adults. Moderna’s CEO, Stephane Bancel, mentioned that there has been increased competition for RSV and Covid vaccines.
According to Bancel, Moderna has been engaged in discussions with various European governments to provide Covid vaccine supply, but some countries have been unable to purchase more vaccines due to budget constraints or existing contracts with other vaccine manufacturers. Despite these challenges, Moderna expects to return to sales growth in 2025 and break even by 2026 with the launch of new products. In the second quarter, Moderna reported a loss per share of $3.33, which was slightly better than the expected loss of $3.39. Revenue for the quarter was $241 million, with product sales of the Covid shot declining by 37% compared to the same period last year. The revenue decline was attributed in part to the expected shift towards a seasonal Covid vaccine market.
Moderna’s net loss for the second quarter was $1.28 billion, or $3.33 per share, an improvement from the net loss of $1.38 billion, or $3.62 per share, reported in the same period last year. The company attributed the reduced loss to cost-cutting measures. Cost of sales decreased by 84% to $115 million, including charges related to unused doses of the Covid vaccine and efforts to reduce manufacturing costs. Research and development expenses increased by 6% to $1.2 billion due to personnel costs, while selling, general, and administrative expenses decreased by 19% to $268 million compared to the previous year.
Despite these challenges, Moderna has managed to maintain investor confidence in its future prospects. The company’s shares have risen by nearly 20% in 2024, driven by optimism surrounding its pipeline of 45 products in development. Five of these products are in late-stage trials, including a combination shot targeting Covid and the flu, which could receive approval by 2025. Moderna is also working on a stand-alone flu shot, a personalized cancer vaccine with Merck, and vaccines for latent viruses, among other products. The company’s messenger RNA platform, which underpins its Covid vaccine and RSV shot, has bolstered expectations for its future success.
