Moderna Inc. reported another quarterly loss as vaccine sales decline and the company faced an unexpected charge due to a canceled manufacturing contract. The Cambridge, Massachusetts-based firm experienced a loss of $2.91 per share in the last quarter of the year, marking its fifth quarterly loss in the past two years. A non-cash charge of $238 million was recorded for the terminated contract. Moderna has been working to stabilize its messenger RNA vaccine business, but its second approved product, an RSV vaccine, has not gained significant traction. The company reduced costs by 27% last year and plans to cut an additional $1 billion this year. Following the news, shares dropped as much as 8.4% in early trading in New York, with a total decline of 23% for the year up to Thursday’s close. Analysts have described the stock as “such a mess,” highlighting the company’s “incredibly high” operational spending.
During the pandemic, Moderna invested heavily in manufacturing to meet the high demand for its Covid vaccine, but it has since been scaling back as demand decreases. Last month, the company lowered its 2025 sales forecast by $1 billion, leading to a significant drop in its stock price. This forecast adjustment was attributed to increased competition in the Covid market, potential delays in facility construction, and the possibility of further declines in Covid vaccination rates.
Moderna lost market share in the US last year, partly due to its limited product offerings during the contracting season. Its main competitor, Pfizer Inc., has a broader product portfolio that allows it to offer bundled discounts, putting pressure on Moderna to lower its prices. The company is prioritizing sales growth, expense reduction, and investment in new product launches this year, according to Chief Financial Officer Jamey Mock. US regulators are expected to make decisions on the approval of Moderna’s next-generation Covid vaccine in late May and an RSV vaccine for younger adults in June. Additionally, a final-stage trial of Moderna’s experimental norovirus vaccine has been placed on clinical hold following a report of Guillain-Barré syndrome, an autoimmune condition that has been linked to other vaccines, infections, and trauma. The event is currently under investigation, but company officials anticipate “minimal impact” on the results.
Analysts from Bloomberg Intelligence noted that the reiterated 2025 guidance, with a midpoint of $2 billion, suggests that the estimate of $2.4 billion may be overly optimistic given the uncertainties surrounding vaccine sales in the US. They also pointed out the lack of updates on pipeline progress, particularly regarding the potential cytomegalovirus vaccine. Fourth-quarter sales approached $1 billion.
