Moderna Shares Slide After Posting a Loss on Falling COVID-19 Vaccine Sales and Production

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published November 02, 2023
Moderna COVID-19 vaccine

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Key Takeaways

  • Moderna posted a steep loss as demand for its COVID-19 vaccine fell and it cut back on production of the shot.
  • The company's 2024 sales outlook was well short of analysts' forecasts.
  • Moderna indicated that "resizing" its manufacturing of the vaccine will make the medicine profitable next year and beyond.

Moderna (MRNA) shares tumbled over 6% Thursday after reporting a steep loss as the drug maker lost sales and cut back on making its COVID-19 vaccine, Spikevax, with demand waning.

Moderna posted a third quarter fiscal 2023 loss of $3.6 billion, or $9.53 per share. The company indicated that much of the decline was related to cutting back on production of Spikevax as well as tax valuation allowance. Revenue sank 46% year-over-year to $1.83 billion, which the company blamed on a decrease in the vaccine's sales.

CEO Stéphane Bancel explained that Moderna "significantly resized our manufacturing infrastructure to make our COVID-19 franchise profitable for 2024 and beyond."

The company predicts fiscal year 2024 revenue at approximately $4 billion, only about two-thirds of analysts' estimates. It expects most of that to come in the second half of the year, primarily because of sales of its COVID-19 shot and new RSV vaccine.

Bancel added that Moderna expects to return to sales growth in 2025 and "through disciplined investment to break even in 2026."

Last month, the company warned that it couldn't predict COVID-19 demand this year, just days after rival Pfizer (PFE) slashed its guidance, with its reduced expectations "solely due to COVID products."

Following the release of its quarterly results, Moderna shares slumped to a three-year low.

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  1. Moderna. "Moderna Reports Third Quarter 2023 Financial Results and Provides Business Updates."

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