Modern Inc. (NASDAQ:) delivered its second quarterly 2024 earnings call, reporting a net loss and a decline in sales of the COVID-19 vaccine outside the United States. Despite these challenges, the company launched its RSV vaccine, mRESVIA, in the United States and received a positive opinion from the European Medicines Agency. The rest of Moderna’s product pipeline saw progress, with positive Phase III results for its flu vaccine and COVID-19 combination vaccine. The company revised its 2024 net product sales forecast to between $3.0 billion and $3.5 billion, citing various market pressures and potential revenue deferrals. Moderna also highlighted its AI-powered HR initiatives and its focus on cost management, preparing for the next COVID era.
Salient aspects
- Moderna’s net income in the second quarter was $184 million, down 37% from a year ago.
- The company reported a net loss of $1.3 billion for the quarter.
- Research and development expenses were $1.2 billion, while selling, general and administrative expenses were $268 million.
- Liquidity and investments totaled $10.8 billion, with a projected year-end cash balance of approximately $9 billion.
- Moderna revised its 2024 net product sales forecast to $3.0-$3.5 billion.
- Positive Phase III results were reported for the influenza vaccine candidate, mRNA-1010, and the combined influenza + COVID vaccine, mRNA-1083.
- Partnerships were announced with BARDA and Mitsubishi Tanabe Pharma.
- Moderna’s RSV vaccine, mRESVIA, has been launched in the United States, with a single dose recommendation for several age groups.
Company perspectives
- Moderna expects a 40%-50% sales increase in the third quarter.
- For the full year, research and development expenses and general and administrative expenses are expected to be $4.5 billion and $1.3 billion, respectively.
- Capital expenditures are expected to be approximately $0.9 billion.
- The company aims to end 2024 with about $9 billion in cash and return to growth in 2025, expecting to end that year with $6 billion to $7 billion in cash.
Bearish highlights
- Moderna faces increased competitive pressure for respiratory vaccines in the United States.
- RSV market projections for the current year did not meet expectations.
- Sales volume of the COVID-19 vaccine outside the United States is down.
- The company recognizes a smaller share of the market due to larger contracts with competitors.
Bullish strengths
- Moderna’s RSV vaccine, mRESVIA, is now available on the US market.
- The company received a positive opinion from the European Medicines Agency for mRESVIA.
- Moderna is confident that the European market will contribute to its sales in 2025 and 2026.
- The company’s clinical programs in oncology and rare diseases are progressing, with positive Phase II results and FDA START designation for mRNA-3705.
loss
- The company’s net loss for the quarter was huge at $1.3 billion.
- Net product sales in the second quarter saw a notable decline from last year.
Highlights from the questions and answers
- Moderna discussed its strategy of targeting high-risk groups and partnering with retail pharmacies to effectively market its vaccines.
- The company addressed the timing of the Phase III CMV study and potential delays in 2025.
- Moderna commented on Pfizer’s RSV vaccine and its enrollment and manufacturing progress for the adjuvant melanoma study.
- The company plans to contact regulators for its next-generation flu and COVID vaccines and is preparing for the upcoming COVID season with supply chain preparations and marketing efforts.
Moderna Inc. responds. in the dynamic vaccine market with new product launches and partnerships, while managing financial expectations amid market challenges. The company remains committed to its diverse clinical programs and expects stronger performance in the coming years.
Insights from InvestingPro
Moderna Inc. (MRNA) has shown remarkable financial maneuvering through an aggressive share buyback, as highlighted by a tip from InvestingPro. This approach may indicate management’s confidence in the company’s true value and future prospects. Additionally, Moderna’s balance sheet reflects a strong liquidity position, with greater cash availability relative to debt, which could provide the company with the financial flexibility needed to navigate these challenging market conditions described in the article.
InvestingPro data highlights the company’s current financial landscape, with a market capitalization of $36.12 billion, indicating its prominence in the biotech sector. However, the data also shows a sharp decrease in revenue over the past twelve months, starting from Q1 2024, with a decrease of 65.78%. This is in line with the article discussing the decline in COVID-19 vaccine sales and market pressures affecting the company’s sales prospects. The negative gross profit margin of -70.27% further highlights the financial challenges facing Moderna, as highlighted in both the InvestingPro article and tips.
For readers interested in a more in-depth analysis, InvestingPro offers additional insights into Moderna’s stock price volatility, analyst expectations for declining sales and profitability, and the company’s performance in past decade. These insights, for a total of 11 additional suggestions of InvestingProis available to help investors make more informed decisions and can be found at: https://www.investing.com/pro/MRNA.
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