Moderna Inc (MRNA) is starting the day on a high note, with its stock soaring in pre-market trading following the release of its impressive third-quarter earnings report. The company surpassed analyst expectations, reporting revenue of $1.83 billion, a significant increase from the $1.25 billion predicted. This strong performance can be attributed to increased sales of its updated COVID-19 vaccine in the U.S. market.
Securing FDA approval three weeks earlier than the previous year allowed Moderna to effectively meet the surge in demand for the updated vaccine. This strategy contributed significantly to the company’s overall success during the quarter.
Breaking down the numbers, Moderna reported $1.8 billion in sales for its Spikevax vaccine in the third quarter of 2024, with $1.2 billion generated in the U.S. and $0.6 billion from international sales. On the earnings front, Moderna reported $0.03 per share, a stark improvement from the $(9.53) loss per share recorded during the same period last year. This performance also outpaced the consensus loss estimate of $(1.90).
Stéphane Bancel, Moderna’s CEO, highlighted the company’s strategic focus on execution, emphasizing the successful launch of its updated COVID-19 and RSV vaccines globally. He expressed satisfaction with the cost efficiency achieved during the quarter, noting that it exceeded their initial projections. Looking ahead, Bancel emphasized the company’s commitment to driving sales growth, securing approvals for 10 new products within the next three years, and continuing to streamline their cost structure.
While Moderna’s RSV vaccine, mRESVIA, generated $10 million in sales during the third quarter, it fell short of initial expectations. This was attributed to the timing of the vaccine’s approval and recommendation, which occurred later in the contracting season when many customers had already finalized their orders.
Looking ahead, Moderna has reaffirmed its 2024 net product sales forecast for its respiratory franchise, expecting a range of $3.0 billion to $3.5 billion. The company anticipates a cost of sales between 40-45% of product sales for the year, a reduction from the previously projected 40-50%. Research and development expenses are expected to range from $4.6 billion to $4.7 billion, slightly lower than the initial estimate of $4.8 billion.
Moderna is aggressively pursuing its pipeline of innovative treatments. The company plans to file for approval of its next-generation COVID-19 vaccine (mRNA-1283) and RSV vaccine (mRNA-1345) for high-risk adults aged 18-59 years during 2024.
The positive news has propelled MRNA stock up by 7.04% to $55.46 during the pre-market session, reflecting investor confidence in the company’s continued growth and promising future prospects.
