Moderna posts surprise quarterly profit despite waning demand for Covid vaccines

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Moderna’s sign is seen outside their headquarters on March 11, 2021 in Cambridge, MA.

Boston Globe | Getty Images

Modern The company on Thursday blew away previous estimates for first-quarter earnings and revenue, posting a surprise quarterly profit despite low demand for its only marketable product, Covid vaccines.

The biotech company reported sales of $1.9 billion in the first quarter, lower than the $6.1 billion it posted in the same period a year ago amid a re-emergence of Covid cases.

Moderna posted net income of $79 million, or 19 cents per share, for the quarter. This compares to $3.66 billion in net income, or $8.58 per share, reported during the same quarter last year.

what’s here up to date information Compared to Wall Street’s expectations, based on a survey of analysts by Refinitiv:

  • earnings per share: 19 cents per share versus the $1.77 per share expected loss
  • Income: $1.86 billion vs. $1.18 billion expected

Still, the Massachusetts-based company’s stock remained lower in premarket trading on Thursday. Shares are down more than 27% for the year as of Wednesday’s close, eroding the company’s market value to about $50 billion.

Moderna maintained its full-year guidance of about $5 billion in revenue from its Covid vaccine, which will come from government contracts signed for the shot. The company said it was in discussions about new contracts with customers in Europe, Japan and the US.

But demand for the Covid shot is still falling as the pandemic subsides and the US shifts to an annual vaccination schedule instead of repeated booster doses. That’s Moderna and rival drug maker pfizer During the peak of the pandemic both the companies were struggling to take off their Covid vaccine which had made both the companies household names.

For Moderna, that means growing its mRNA-based drug pipeline.

The company’s products use messenger RNA technology, which teaches human cells to produce a protein that initiates an immune response against a certain disease.

Moderna said in April that it expected to offer a new set Number of life-saving vaccines targeting cancer, heart disease and other conditions expected by 2030.

That lineup includes Moderna’s experimental vaccine that targets respiratory syncytial virus. The company expects to file for full approval of the shot for adults age 60 and older this quarter.

This also includes Moderna’s personalized cancer vaccine, a highly anticipated mRNA shot being co-developed with merck To target different tumor types. Moderna is also developing a flu vaccine, but the company said the shot does not meet Initial success criteria in a late stage clinical trial.

Moderna will hold an earnings call at 8:00 am ET.

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