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Moderna, the biotech company, witnessed a rise in its stock prices after revising its full-year outlook for its Covid vaccine, which is its only marketable product. This positive development comes even though the company reported a quarterly loss and a significant drop in revenue.
During the second quarter, Moderna generated sales amounting to $344 million, a sharp decline from the $4.75 billion it recorded in the same period a year ago when Covid cases were still prevalent in the United States. The company’s net loss for the quarter was $1.38 billion, or $3.62 per share, compared to a net income of $2.20 billion, or $5.24 per share, reported during the same quarter last year.
However, Moderna remains optimistic about the future. It expects sales from its Covid shot to reach $6 billion to $8 billion this year, with potential U.S. demand for 50 to 100 million doses in the upcoming fall season. This revised forecast is higher than its previous estimate of $5 billion.
Moderna’s financial results are as follows:
- Loss per share: $3.62 (This may not be comparable to the $4.04 expected by analysts surveyed by Refinitiv)
- Revenue: $344 million (This may not be comparable to the $319.6 million expected by analysts surveyed by Refinitiv)
In premarket trading, Moderna’s shares rose nearly 4%. However, the company’s overall market value has declined by over 38% this year, standing at approximately $42 billion.
In addition to Moderna, other pharmaceutical companies like Pfizer and Novavax have also experienced a decline in sales of their Covid-related products as the world moves towards a post-pandemic phase. Nevertheless, the demand for vaccines and treatments remains due to the ongoing risk of Covid-related illnesses and deaths. Consequently, these drugmakers are investing in the development of new products to combat the virus.
The sales of Covid vaccines for Moderna and its competitors will vary in the second half of the year. The U.S. government plans to shift Covid products to the commercial market, allowing drugmakers to sell vaccines and treatments directly to healthcare providers rather than to the government.
All three companies are awaiting approval from the Food and Drug Administration for updated versions of their shots targeting the omicron subvariant XBB.1.5, which is currently the most immune-evasive strain of the virus. Moderna has not disclosed the expected availability of its shots to the public after approval. However, new CDC Director Mandy Cohen has indicated that the new vaccines could potentially be available by early October.
Moderna will host an earnings call with investors at 8 a.m. ET, where updates on its upcoming Covid vaccine rollout and drug pipeline are expected.
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