Moderna’s Earnings, Revenue Fall on Fewer Vaccine Sales
Moderna said its research and development expenses soared in the fourth quarter.
Photo:
Simon Simard for The Wall Street Journal
Moderna Inc.
MRNA -8.61%
reported lower revenue and earnings in the fourth quarter as demand for its Covid-19 vaccine sank from year-earlier highs when the spread of the Omicron variant boosted sales.
The pharmaceutical company, based in Cambridge, Mass., on Thursday said a decrease in volumes for its Covid-19 vaccine pushed sales 29% lower to $5.1 billion, which still topped analyst expectations for $5.02 billion, according to FactSet.
The cost of those sales shot up due to higher royalties, inventory write-downs from expired Covid-19 products, a loss on firm purchase commitments and expenses tied to unused manufacturing capacity.
Moderna’s profit fell 70% to $1.5 billion, while per-share earnings dropped by two-thirds to $3.61. Analysts recently polled by FactSet had expected profit of $4.60 a share.
Besides the royalties, the jump in costs was driven by surplus production capacity and declining demand that became more focused on Moderna’s Omicron-targeting booster shot, the company said.
Research and development expenses meanwhile soared 87% in the fourth quarter to $1.2 billion as the company spent more on clinical trials and development of its RSV, seasonal flu and cytomegalovirus programs.
Overhead costs climbed at the same rate to $375 million as Moderna poured more money into marketing.
The company has $5 billion in advance purchase agreements for 2023, with the potential for additional sales opportunities in the U.S., Europe, Japan and other markets.
Shares declined 2.5% to $154.27 in premarket trading.
Write to Dean Seal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Moderna said its research and development expenses soared in the fourth quarter.
Photo:
Simon Simard for The Wall Street Journal
Moderna Inc.
MRNA -8.61%
reported lower revenue and earnings in the fourth quarter as demand for its Covid-19 vaccine sank from year-earlier highs when the spread of the Omicron variant boosted sales.
The pharmaceutical company, based in Cambridge, Mass., on Thursday said a decrease in volumes for its Covid-19 vaccine pushed sales 29% lower to $5.1 billion, which still topped analyst expectations for $5.02 billion, according to FactSet.
The cost of those sales shot up due to higher royalties, inventory write-downs from expired Covid-19 products, a loss on firm purchase commitments and expenses tied to unused manufacturing capacity.
Moderna’s profit fell 70% to $1.5 billion, while per-share earnings dropped by two-thirds to $3.61. Analysts recently polled by FactSet had expected profit of $4.60 a share.
Besides the royalties, the jump in costs was driven by surplus production capacity and declining demand that became more focused on Moderna’s Omicron-targeting booster shot, the company said.
Research and development expenses meanwhile soared 87% in the fourth quarter to $1.2 billion as the company spent more on clinical trials and development of its RSV, seasonal flu and cytomegalovirus programs.
Overhead costs climbed at the same rate to $375 million as Moderna poured more money into marketing.
The company has $5 billion in advance purchase agreements for 2023, with the potential for additional sales opportunities in the U.S., Europe, Japan and other markets.
Shares declined 2.5% to $154.27 in premarket trading.
Write to Dean Seal at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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