The pandemic’s dark days are now behind us for the majority of us, and it appears that Moderna’s earnings, which rely on the sales of its COVID-19 vaccine, reflect this positive shift.
Moderna generated $167 million in sales during the first quarter of the year, primarily driven by its sole product, the Spikevax COVID-19 vaccine. This marks a significant decrease of 91% compared to the $1.9 billion reported in the same quarter of the previous year.
Moderna, the vaccine maker, saw a decline in revenue due to a decrease in demand for the vaccine in 2021. However, there is some positive news for the company. Despite the drop in demand, its revenue exceeded Wall Street’s expectations of $97.5 million. As a result, Moderna’s shares surged by 7% on Thursday. Additionally, Moderna recently announced a collaboration with OpenAI, integrating AI and ChatGPT into its operations. This partnership, which began in 2023, aims to enhance the company’s capabilities. Moreover, Moderna has plans to launch a new RSV vaccine in the upcoming fall.
Moderna’s net loss for the first quarter was $1.18 billion, surpassing Wall Street’s expectations of $1.4 billion. Additionally, the company is projecting $4 billion in sales for the full year.
According to its first-quarter earnings report, the biopharmaceutical company based in Massachusetts stated that its decrease in sales is in line with the expected shift to a seasonal COVID-19 vaccine market. This implies that the market for the vaccine will resemble that of the flu shot. The company also mentioned that its revenue sales in 2023 were primarily boosted by doses that were postponed from 2022.
It is worth mentioning that the vaccine manufacturer, with approximately 5,100 employees as of June 2023 and established in 2010, operates in a distinct category from other pharmaceutical leaders who profited from the pandemic. For instance, Pfizer, founded in 1849, reported first-quarter sales of $14.88 billion, while Johnson and Johnson, established in 1886, posted $21.4 billion in first-quarter revenue.
One reason for the low sales of Moderna is the infrequent administration of booster vaccines by Americans in recent years. According to the Centers for Disease Control and Prevention, as of the end of April this year, just over 22% of American adults have reported receiving an updated COVID-19 vaccine since mid-September. Furthermore, a Pew Research Center report revealed that approximately 28% of adults have received the most up-to-date vaccine. Despite a public-health campaign encouraging adults to get both flu and COVID-19 vaccines simultaneously, almost half of those who received a flu shot from a health care provider chose not to get the updated COVID-19 vaccine.
Moderna’s upcoming priorities include the continued distribution of mRNA vaccines, which instruct cells to produce proteins that stimulate an immune response. Their next ventures involve the development of an RSV vaccine and a seasonal flu vaccine. As per their latest earnings report, Moderna’s RSV vaccine is currently in the third phase of clinical trials mandated by the FDA. They anticipate receiving regulatory approvals for the vaccine in the first half of this year, with plans to launch it in the fall of 2024, coinciding with the onset of the cold and flu season.
Moderna has partnered with OpenAI to leverage the power of AI throughout its operations. The collaboration aims to introduce 15 innovative products to the market within the next five years, as stated by OpenAI. These products encompass a wide range, from RSV vaccines to personalized cancer treatments, thereby enhancing Moderna’s revenue streams and ensuring a diversified future for the company.
Moderna CEO Stéphane Bancel expressed his optimism for the future of the company’s vaccine platform, stating that this year marks the beginning of a promising era for their mRNA medicines. He emphasized that this is only the start of their journey towards innovation and advancements in healthcare.
