Moderna (MRNA) earnings Q2 2024

Moderna on Thursday reported second-quarter revenue that beat expectations but slashed its full-year sales guidance, citing lower expected sales in Europe, a “competitive environment” for respiratory vaccines within the U.S. and the potential for deferred international revenue into 2025. 

The biotech company now expects 2024 product revenue to are available in between $3 billion and $3.5 billion, down from previous guidance of $4 billion. 

Shares of the corporate closed greater than 20% lower on Thursday.

The corporate has began shipping doses of its vaccine for respiratory syncytial virus, called mRESVIA, within the U.S. following its approval in May for older adults. It’s Moderna’s second-ever commercially available product after its Covid vaccine, which has seen demand plunge because the world emerges from the pandemic and relies less on protective shots and coverings.

Moderna CEO Stephane Bancel told CNBC there was “more intensity of competition” for each RSV and Covid vaccines. He noted that mRESVIA is the third RSV shot to enter the market following jabs from Pfizer and GSK, the latter of which dominated the market last 12 months.

He added that “we have been having quite intense discussions with governments across Europe” to get Covid vaccine supply from Moderna.

But “some countries, as recently as of last week, have told us that due to a really tight budget … they simply do not have the capability to purchase more vaccine than they need because they have already got” one other contract, Bancel said.

He’s referring to the European Union’s massive renegotiated Covid vaccine supply contract with Pfizer and its German partner BioNTech. He also pointed to the continuing war in Ukraine, which is straining government budgets. 

Still, Moderna expects to return to sales growth in 2025 and to interrupt even by 2026, with the launch of latest products, Bancel said. 

Here’s what Moderna reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Loss per share: $3.33 vs. lack of $3.39 expected
• Revenue: $241 million vs. $132 million expected

The corporate booked second-quarter revenue of $241 million, with product sales from its Covid shot dropping 37% from the identical period a 12 months ago. Moderna reported $344 million in revenue within the prior-year period. 

The corporate said the revenue decline got here partly from an expected transition to a seasonal Covid vaccine market, where patients typically take their shots in the autumn and winter. But Bancel said Moderna had a “good spring season” within the U.S. for seniors, who’re advisable to receive a further dose of the newest round of Covid shots.

Moderna posted a net lack of $1.28 billion, or $3.33 per share, for the second quarter. That compares with a net lack of $1.38 billion, or $3.62 per share, reported for the year-ago period. 

Bancel said the corporate lost lower than Wall Street expected partly attributable to its progress in cutting costs. 

Moderna had “a bit bit more sales than anticipated but loads of cost savings ahead of what the Street was expecting,” he said. “In order that’s why I’m really joyful with the progress we’re making on each fronts.”

Cost of sales was $115 million, down 84% from the identical period a 12 months ago. That features $14 million in write-downs of unused doses of the Covid vaccine and $55 million in charges related to the corporate’s efforts to reduce its manufacturing footprint, amongst other costs. 

Research and development expenses for the second quarter rose by 6% to $1.2 billion compared with the identical period in 2023. That increase was primarily attributable to personnel costs, including the next headcount. 

Meanwhile, selling, general and administrative expenses for the period fell by 19% to $268 million compared with the second quarter of 2023. SG&A expenses normally include the prices of promoting, selling and delivering an organization’s services.

Moderna has up to now managed to shore up investor sentiment about its path forward after Covid. Its shares are up nearly 20% this 12 months on increasing confidence around its pipeline and messenger RNA platform, which is the technology utilized in its Covid vaccine and RSV shot.

The biotech company currently has 45 products in development, five of that are in late-stage trials. They include its combination shot targeting Covid and the flu, which could win approval as early as 2025.

Moderna can be developing a stand-alone flu shot, a customized cancer vaccine with Merck and shots for latent viruses, amongst other products.