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Moderna Posts Large Q3 Loss With Weaker Vaccine Demand, Projects $4B in Sales for 2024, Investors Concerned

Moderna's Q3 loss of $3.6 billion prompts reduction in manufacturing and revised 2023 sales guidance, with a recovery expected by 2025 thanks to future vaccine prospects and the company's shift towards non-COVID products.

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Overview

  • Moderna reported a Q3 loss of $3.6 billion, primarily driven by $3.1 billion in non-cash charges related to contract manufacturing wind-down and tax reserves, as well as a decrease in COVID-19 vaccine sales.
  • The company forecasts a drop in sales to $4 billion in 2024, significantly below analysts' expected $6 billion, due to weak vaccine demand; it anticipates a return to sales growth in 2025 as new vaccines hit the market.
  • To adapt the business cost structure to the post-pandemic era, Moderna resized its manufacturing infrastructure; it ended contracts with outside contractors and didn't involve internal job cuts.
  • Moderna's 2023 sales guidance has been revised to at least $6 billion overall and at least $2 billion from the U.S., predicting the overall U.S market for fall 2023 will need at least 50 million COVID shot doses.
  • The company is planning to invest approximately $25 billion in research and development between 2024 and 2028, aiming to launch 15 new products by 2028 and shift focus towards non-COVID products, including vaccines for flu, RSV, and cancer.