Moderna lowers guidance after fall in quarterly revenue

Moderna reported a significant fall in second quarter revenue on Thursday, to $241m, down from $344m in the same period last year, as it lowered its full-year guidance amid weak Europe sales and a competitive US market.

The biotechnology vaccine specialist said its net loss reached $1.3bn, or $3.33 per share, a slight improvement from the $1.4bn loss in the second quarter of 2023.

It put its revenue decline down to a 37% drop in sales of its Covid-19 vaccine, reflecting a shift towards a seasonal vaccine market with anticipated higher demand later in the year.

Despite the decrease in revenue, Moderna said it made substantial progress in its vaccine portfolio.

The US Food and Drug Administration (FDA) approved the company's RSV vaccine, mRESVIA, which started shipping in July.

Additionally, positive phase three trial results were announced for Moderna's combination vaccine against influenza and Covid-19, as well as its next-generation Covid-19 vaccine, which demonstrated strong efficacy.

Research and development expenses rose 6% to $1.2bn, driven by increased personnel costs and investment in ongoing projects.

However, selling, general, and administrative expenses saw a 19% reduction to $268m, reflecting cost discipline and operational efficiencies.

Moderna updated its 2024 financial outlook, revising expected product sales to between $3bn and $3.5bn, influenced by low sales in the European Union and a competitive respiratory vaccine market in the US.

The company said it expected to close the year with around $9bn in cash and investments.

It said it continued to focus on its strategic priorities, including advancing its pipeline of respiratory vaccines and oncology therapeutics.

Moderna said it had also strengthened its board with the addition of David Rubenstein, co-founder of the Carlyle Group, while two long-serving directors were set to retire.

“During the second quarter, we marked the approval of our second mRNA product and significantly lowered our operating costs,” said chief executive officer Stephane Bancel.

“We remain focused on execution for the 2024-2025 Covid season and the launch of our RSV vaccine in the US.”

Bancel said that with continued positive phase three data across the company’s respiratory portfolio, Moderna was using our mRNA platform to address significant unmet medical needs and advance public health.

“Our platform is poised to reach millions globally this year and we are excited by its continued positive impact on patients.”

At 0746 EDT (1246 BST), shares in Moderna were down 10.68% in premarket trading in New York at $106.49.

They had closed 0.32% firmer ahead of the results announcement on Wednesday, at $119.22.

Reporting by Josh White for Sharecast.com.