Moderna posts surprise profit as COVID vaccine sales exceed expectations

Moderna reported a surprising third-quarter profit on Thursday, driven by cost reductions and stronger-than-expected sales of its COVID-19 vaccine, despite lower-than-anticipated revenue from its new respiratory syncytial virus (RSV) vaccine.

Shares of the Cambridge, Massachusetts-based company jumped 11% in premarket trading.

For the quarter, Moderna posted a profit of $13 million, or 3 cents per share, compared to a loss of $3.6 billion in the same period last year.

Analysts had expected a loss of $753 million, or $1.90 per share, according to LSEG data, Reuters reported.

Sales of its Spikevax COVID vaccine reached $1.8 billion, up 3.5% year-over-year, surpassing analysts’ expectations of $1.38 billion.

The company attributed this strong performance to increased sales in the US following an early launch of the vaccine this year.

The US Food and Drug Administration approved updated versions of Spikevax and Pfizer’s Comirnaty nearly three weeks earlier than in 2023.

Moderna noted that international sales of Spikevax were lower compared to the same period in 2023 when sales were boosted by deferred orders from 2022.

Operating expenses for the quarter totaled $1.93 billion, nearly 50% lower than the previous year, largely due to reduced unused manufacturing capacity and fewer inventory write-downs.

RSV vaccine, mRESVIA, generate $10 million in sales

The company’s new RSV vaccine, mRESVIA, generated $10 million in sales, falling significantly short of the $135 million analysts had expected. Despite this, Moderna reaffirmed its annual sales forecast of $3 billion to $3.5 billion.

“This guidance looks well within reach, especially with strong expected sales in Q4 from the COVID vaccine,” said TD Cowen analyst Tyler Van Buren.

Moderna is increasingly relying on revenue from newer mRNA vaccines, such as mRESVIA and an experimental COVID-19 combination vaccine, to offset declining demand for COVID-19 products post-pandemic.

Mock explained that the company struggled to compete during the peak of the RSV contracting season because mRESVIA was approved later in the year, and many contracts and inventory had already been secured.

US market share for Spikevax fell to 40%, down from 45% in Q3 2023. Moderna reported that 7.5 million patients received Spikevax this year, compared to nearly 11 million people who received Pfizer’s COVID-19 vaccine during the same period, according to IQVIA data.

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