Moderna on Friday posted the fourth quarter income to defeat the ratings, but lost more than expected for this period, as the biotechnical company continues to reduce costs and demand for its collapse of the Covid vaccine.
It marks the other quarter of growing pain for the company, which is competing to launch new products and recover from the rapid decline of its once flowering business Covid.
Modern shares fell more than 4% in pre -trading on Friday.
Modernna posted a net loss of $ 1.12 billion, or $ 2.91 per share for the fourth quarter of 2024.
The company said quarterly loss includes a fee of about $ 238 million non-Para in connection with the termination of a contract production agreement.
In an interview, Modern CFO Jamey Mock said one of the most important obstacles from the full year’s full year results is that it reduced the costs by 27% compared to 2023. By the end of 2025, Modern expects to reduce costs by 1 billion dollars compared to 2024.
Moderna reiterated its full 2025 product sales guidance of $ 1.5 billion up to $ 2.5 billion, most of which will come in the second half of the year. Moderna expects only $ 200m for sale to come during the first half of the year due to seasonal demand for respiratory products, which usually grows in the fall and winter.
The company lowered its 2025 sales instructions by approximately $ 1 billion in January, making its shares fall. The stock is now more than 20% for the year.
At that time, Moderna showed the increase in competition in the Covid market, the decline in vaccination levels, the time around production contracts with a small portion of countries, and uncertainty about what advisers in centers for disease control and prevention would recommend for revaxing the sykytial respiratory virus shots.
“If those possible heads all hit, this is what would lead us to the low end of our instruction,” Mock told CNBC, adding that the company hopes to “fight” the challenges.
Here’s what Modern reported for the fourth quarter that ended on December 31 Compared to what Wall Street was expecting, based on a study by analysts by LSEG:
- Loss for action: $ 2.91 versus an expected loss of $ 2.68
- Income: $ 966 million versus $ 942.8 million are expected
Moderna posted sales of the fourth quarter of $ 966 million, less than half of the $ 2.8 billion he recorded during the same period a year earlier.
The vast majority of that total came from her Covid’s shot, which withdrew to $ 923 million, down 66% a year ago. This includes US $ 244 million in sale of the US and $ 679 million from international markets.
Analysts had expected Jab to withdraw $ 909 million for sale for the quarter, according to estimates compiled by Streetaccount.
Moderna said the landing was largely due to the previous onset of the newest repetition of her Covid shot last year, which moved sales to the third trimester. The Food and Drug Administration approved the new vaccine three weeks earlier than in 2023, allowing the modern to “meet the demand more effectively before the fourth trimester,” the company added.
Covid vaccines sales fell internationally because the company continued to cause preliminary acquisition agreements with certain places, according to modern.
The fourth quarter revenue of the company also included $ 15 million in its US Sales of RSV, which revolved the elderly in the fall and winter after gaining approval in May. Product is the second approved product of modern after its Covid vaccine.
Analysts had been waiting for sales of $ 13 million for the RSV vaccine, according to Streetaccount estimates. Moderna’s RSV hit has so far been approved for adults aged 60 and above in the US, the European Union, Canada, Norway, Iceland and Qatar among other countries.
The company is betting on a pipeline built around its Messenger RNA platform, which is the technology used in both those products. Moderna plans to improve its portfolio with 10 new product approvals over the next three years.
During the fourth trimester, Moderna introduced three MRNA products for regulatory approval, including its “next generation” purpose, shot in combination, the purpose of targeting Covid and the flu and RSV vaccine for high -risk adults 18 to 59 years old. Moderna expects a decision from FDA in the next generation Covid fired in May, and an enhanced approval for RSV shot in June, according to Mock.
Moderna is also developing a standalone influenza stroke, a personalized vaccine of cancer with Merck and shots for latent viruses, among other products. Some of those products will have data readings later this year, Mock noted.
The cost of sales for the fourth quarter was $ 739 million, below 20% from the same period a year earlier. This includes $ 193 million in writing the unused doses of the Covid vaccine, among other costs.
Research and development costs dropped by 20% to $ 1.1 billion compared to the same period in 2023. RSV, flu and partially, and partially offset expenses for other new experimental products.
Meanwhile, sale, total and administrative expenses for the period fell by 25% to $ 351 million compared to the fourth quarter of 2023. SG & A costs usually include the costs of promoting, selling and distributing products and services of a company.