A vial of the Modern Coronavirus Disease (COVID-19) booster vaccine targeting the BA.4 and BA.5 omicron subvariants is pictured at Skippack Pharmacy on September 8, 2022 in Schwenksville, Pennsylvania.
Hannah Beer | reuters
Moderna Earnings for the fourth quarter missed expectations on Thursday as costs rose from surplus production capacity and low demand for the Covid-19 vaccine, the company’s only product on the market.
Moderna reported quarterly earnings of $3.61 per share, down 68% compared to the same period in 2021, when it booked $11.29 per share. The figure fell short of Wall Street’s expectation of $4.68 per share.
The Boston biotech company reported revenue of $5.1 billion in the fourth quarter of 2022, which was in line with analysts’ expectations but declined 30% from the same period in 2021.
Moderna’s shares fell more than 3% in pre-market trading.
Moderna has signed a contract worth $5 billion in Covid vaccine delivery for 2023. Although the company is expecting additional sales in the US, Europe and Japan in 2023, demand for the vaccine is falling as the pandemic eases and life returns to normal.
Here’s how the company performed compared to Wall Street’s expectations, based on the average of analysts’ estimates compiled by Refinitiv:
- adjusted income: $3.61 per share, versus the $4.68 expected
- Income: $5.1 Billion Vs. $5 billion expected
Moderna projects $18.4 billion in vaccine sales during 2022, up 4% from last year and the company’s high water level for revenue during the pandemic. The company projects net income of $8.4 billion in 2022, down 31% from 2021.
The company said that its cost increased by 25 per cent in the fourth quarter. These expenses include a $297 million write-off for vaccines that have exceeded their shelf life, $376 million from unused manufacturing capacity, and a $400 million royalty payment to the National Institute of Allergy and Infectious Diseases.
Although Moderna’s only product on the market is the Covid shot, the company plans to ask the Food and Drug Administration to approve its vaccine in the first half of this year after reading positive data that it could protect older adults from respiratory syncytial virus. saves.
The FDA has designated Moderna and Merck’s personalized cancer vaccine as a breakthrough therapy, which could accelerate development and regulatory review of the shot.
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