Moderna Inc., headquartered in Cambridge, Massachusetts, recently published its fourth-quarter revenue, surpassing expectations, but also reported a larger loss than anticipated. The biotech giant is navigating through a challenging period of restructuring its operations and adapting to fluctuating demand for its Covid vaccine. This rollercoaster ride in the company’s financial performance has led to a 4% drop in premarket trading, reflecting the complexities of the current market landscape.
Revenue and Losses
In the fourth quarter of 2024, Moderna recorded a net loss of $1.12 billion, or $2.91 per share, a significant contrast to the net income of $217 million, or 55 cents per share, reported during the same period the previous year. The company attributed this substantial loss to a non-cash charge of approximately $238 million linked to the termination of a contract manufacturing agreement. Despite these setbacks, Moderna’s Chief Financial Officer, Jamey Mock, highlighted a notable achievement in cost reduction, stating that the company managed to cut costs by 27% compared to the previous year. Looking ahead, Moderna aims to achieve an additional $1 billion in cost savings by the end of 2025, setting a strategic target to streamline its operations and drive efficiency.
Product Sales and Market Outlook
Moderna has set its sights on generating product sales between $1.5 billion and $2.5 billion for the full year of 2025, with a significant portion expected in the latter half of the year. The company anticipates a modest $200 million in sales during the first six months due to seasonal trends in respiratory product demand. With a revised sales guidance issued earlier this year, Moderna has faced challenges in the competitive Covid market, combined with fluctuating vaccination rates and uncertainties surrounding future health recommendations. These factors have contributed to a downward trend in the company’s stock performance, which is currently down by over 20% for the year.
Amidst these financial hurdles, Moderna remains committed to its long-term growth strategy, focusing on expanding its product portfolio centered around messenger RNA technology. The company’s recent submissions for regulatory approval of three mRNA products, including an advanced Covid shot, a combination vaccine targeting Covid and the flu, and an RSV vaccine for high-risk adults, underscore its dedication to innovation and diversification. These initiatives are part of a broader plan to secure approvals for 10 new products within the next three years, signaling Moderna’s ambition to revolutionize the pharmaceutical landscape.
While the road ahead may present challenges, Moderna is forging ahead with confidence, backed by a robust pipeline of products and a commitment to delivering cutting-edge solutions to global healthcare challenges. As the company navigates through the ups and downs of the market, its resilience and innovative spirit continue to drive progress and shape the future of biotechnology.
Cost of sales for the fourth quarter was $739 million, down 20% from the same period a year ago. That includes $193 million in writedowns of unused doses of the Covid vaccine, among other costs. Research and development expenses dropped by 20% to $1.1 billion compared with the same period in 2023. Moderna said that decline was primarily due to lower clinical development and manufacturing expenses on its Covid, RSV, flu, and combination shot programs, and partially offset by increased spending on other new experimental products. Meanwhile, selling, general, and administrative expenses for the period fell by 25% to $351 million compared with the fourth quarter of 2023. SG&A expenses usually include the costs of promoting, selling, and delivering a company’s products and services.
