Moderna Cuts Revenue Forecast, Stock Drops 20%

Moderna, the biotech company known for its Covid vaccine, has revised its 2024 product revenue expectations to between $3 billion and $3.5 billion, a significant decrease from its previous estimate of $4 billion. This adjustment follows the company’s second-quarter earnings report, which revealed a revenue of $241 million, surpassing analyst expectations but reflecting a 37% decline in product sales from the same period last year. The company cited lower anticipated sales in Europe and a competitive landscape for respiratory vaccines in the U.S. as key factors influencing this downward revision. The decline in demand for Covid vaccines, as the global focus shifts away from pandemic-related health measures, has impacted Moderna's financial outlook. The company’s second-quarter net loss was reported at $1.28 billion, or $3.33 per share, although this was less than Wall Street's expectations. Moderna's CEO, Stéphane Bancel, attributed the smaller loss to cost-cutting measures, which included write-downs of unused vaccine doses and efforts to streamline manufacturing operations. In addition to its Covid vaccine, Moderna has introduced mRESVIA, its third respiratory syncytial virus (RSV) shot, entering a market already populated by competitors like Pfizer and GSK. The company is actively engaging with European governments to secure Covid vaccine supply contracts, indicating ongoing efforts to maintain its market presence despite the challenges. Research and development expenses rose by 6% to $1.2 billion, while selling, general, and administrative costs decreased by 19% to $268 million. Moderna is also working on a combination vaccine targeting both Covid and the flu, which could receive approval as early as 2025.