Moderna reported a narrower-than-expected loss for the first quarter of the year, thanks to cost-cutting efforts and increased sales of its Covid vaccine. The company is preparing to launch another product, a vaccine against respiratory syncytial virus, in the third quarter. Despite a decrease in revenue from its Covid shot, Moderna remains optimistic about its financial outlook, with a full-year 2024 sales guidance of roughly $4 billion. The company expects to return to sales growth in 2025 and break even by 2026 with the launch of new products.
The company reported first-quarter sales of $167 million, with revenue from its Covid vaccine dropping by approximately 90% compared to the same period last year. Moderna’s net loss for the quarter was $1.18 billion, or $3.07 per share, compared to net income of $79 million in the year-ago period. The company is confident in its ability to reach its financial targets, including breaking even by 2026, with the launch of new products and returning to sales growth in 2025.
Moderna’s cost-cutting efforts have shown positive results, with cost of sales decreasing by 88% and research and development expenses declining by 6% compared to the first quarter of 2023. The company has been working on streamlining operations through partnerships with artificial intelligence companies like OpenAI, aiming to automate various business processes. Moderna currently has 45 products in development, including a combination shot targeting Covid and the flu, a stand-alone flu shot, a personalized cancer vaccine with Merck, and shots for latent viruses.
The company expects to receive U.S. approval for its vaccine against respiratory syncytial virus on May 12, with the shot anticipated to launch in the third quarter. Moderna’s focus is on innovation and the development of new products to drive future growth. The biotech company’s shares have risen more than 10% this year, reflecting increasing confidence in its pipeline and messenger RNA platform. With multiple products in late-stage trials, including combination shots targeting Covid and the flu, Moderna is poised for continued success in the coming years.
Moderna’s financial performance for the first quarter exceeded expectations, with the company making progress in reducing operating expenses and optimizing its manufacturing footprint. The biotech company remains committed to its long-term financial targets, including returning to sales growth in 2025 and achieving profitability by 2026. With a focus on innovation and the development of new products, Moderna is well-positioned to capitalize on future opportunities and drive continued success in the biotechnology industry.
