Home News Moderna Takes Bigger Share of U.S. COVID-19 Vaccine Market, Stock Rises

Moderna Takes Bigger Share of U.S. COVID-19 Vaccine Market, Stock Rises

by SuperiorInvest

Key takeaways

  • Moderna increased its share of the US COVID-19 market and posted a surprise profit.
  • The biotech company's revenue fell from the same period a year earlier, but was better than expected.
  • Moderna anticipates sales gains for its experimental RSV vaccine, which it hopes to win U.S. regulatory approval by May 12.

Moderna (MRNA) grabbed a larger share of the U.S. COVID-19 vaccine market in the fourth quarter, helping the biotech company post a surprise profit. Shares rose more than 10% in early trading Thursday following the news.

The company reported that it captured a 48% share of U.S. COVID-19 sales during the fall season, up from 37% a year earlier. Moderna noted that it took “specific actions” to transition to a seasonal endemic market in 2023. That included “resizing its manufacturing footprint to improve cash flow, flattening its commercial structure to drive sales execution and concentration of their investments”. towards short-term growth engines.”

Still, global revenue for the vaccine fell 43% to $2.8 billion, which it said was due to lower volume as demand waned. Overall revenue fell 45% to $2.81 billion, although it beat estimates. The company noted that the total was boosted by $600 million in deferred revenue related to its collaboration with Gavi, a non-governmental organization (NGO) that participated in a global program to distribute COVID-19 shots.

Moderna reported earnings per share of $0.55, while analysts had anticipated a loss. The company said it was seeing the impact of cost-cutting measures it began taking in the third quarter. CEO Stéphane Bancel added that “we remain focused on business execution and continued investment in our portfolio with financial discipline.”

The company reiterated its full-year revenue guidance of $4 billion and said it anticipates profits from its experimental respiratory syncytial virus (RSV) vaccine, which it expects to gain U.S. regulatory approval on May 12. . It also plans to sell the shot in Australia and Germany this year.

Moderna shares rose 10.4% to $96.74 at approximately 11:35 a.m. ET on Thursday. Despite Thursday's rise, Moderna shares have lost more than a third of their value over the past year.


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