Moderna Inc. experienced a 5.5% rally in premarket trade on Thursday following the release of its second-quarter financial report. Although the company’s revenue fell significantly from the previous year, it still managed to surpass consensus estimates.
- Net loss of $1.38 billion, or $3.62 per share, compared to income of $2.197 billion, or $5.24 per share, in the same period last year.
- Revenue dropped to $344 million from $4.749 billion in the previous year, primarily due to decreased demand for COVID vaccines.
The FactSet consensus predicted a loss of $3.93 and revenue of $308 million, indicating that the company performed better than anticipated.
COVID Vaccine Sales Boost Revenue
Moderna’s revenue for the quarter was largely driven by sales of its COVID vaccine, amounting to $300 million. The company expects total COVID vaccine sales for 2023 to range between $6 billion and $8 billion, depending on U.S. vaccination rates.
In addition to its COVID vaccine, Moderna has other products in the pipeline, including an RSV vaccine that is currently seeking approval with plans for a 2024 launch.
Promising Prospects for Moderna’s Pipeline
Chief Executive Stéphane Bancel expressed optimism about the company’s future prospects, stating that Moderna’s late-stage clinical pipeline is thriving. The company has four infectious disease vaccines in Phase 3 trials, including the RSV vaccine recently submitted for regulatory approval.
Furthermore, Moderna’s individualized neoantigen therapy is now in Phase 3 for melanoma, and its lead rare disease program for PA is in dose confirmation. Bancel believes that all these products have the potential to launch between 2024 and 2026.
Moderna’s stock has experienced a decline of 39% year-to-date, while the S&P 500 has gained 18%. Despite the stock’s performance, Moderna remains optimistic about its future in the mRNA medicine market.