In this article, Moderna surprised the market by reporting a profit for the third quarter, exceeding Wall Street expectations. The company’s cost-cutting measures were successful, and sales of its Covid vaccine surpassed projections. Moderna recorded a net income of $13 million, or 3 cents per share, compared to a net loss of $3.63 billion, or $9.53 cents per share, in the same period last year. The company’s shares remained unchanged on Thursday.
Moderna is focused on reducing expenses and aims to achieve $1.1 billion in savings by 2027. The company is recovering from the decline in its Covid business and recently launched its vaccine against respiratory syncytial virus (RSV), its second commercially available product. Moderna plans to seek approval for its experimental “next-generation” Covid vaccine and a combination shot for Covid and the flu before the end of the year. Additionally, the company intends to apply for expanded approval of its RSV vaccine for high-risk adults aged 18 to 59.
The company reported that its latest Covid vaccine had a successful launch in the U.S., reaching the market three weeks earlier than its previous version in 2023. This early launch enabled Moderna to meet demand more effectively by distributing doses to pharmacies and healthcare providers promptly. Moderna’s CEO, Stéphane Bancel, highlighted the significant increase in sales due to the early launch and efficient distribution.
Moderna’s third-quarter sales totaled $1.86 billion, slightly higher than the $1.83 billion reported a year ago. Most of the revenue came from the Covid vaccine, with $1.2 billion in U.S. sales and approximately $600 million from international markets. The company also generated $10 million in U.S. sales from its RSV vaccine. However, sales of the RSV shot were lower than expected due to regulatory approval timing.
The company reaffirmed its full-year 2024 product sales guidance of $3 billion to $3.5 billion. Moderna’s stock has declined by nearly 50% this year as investors assess its post-Covid strategy. The company is banking on its messenger RNA platform for future growth, with 45 products in development and plans to launch 10 of them in the next three years. Moderna is working on various products, including a stand-alone flu shot, a personalized cancer vaccine with Merck, and treatments for latent viruses.
Cost of sales for the third quarter decreased by 77% to $514 million, including write-downs of unused Covid vaccine doses and charges related to scaling back manufacturing operations. Research and development expenses dropped by 2% to $1.1 billion, mainly due to lower clinical development costs. Selling, general, and administrative expenses decreased by 36% to $281 million, covering costs related to promoting and delivering the company’s products and services.
