Moderna posts $1.2bn Q1 2024 loss

Moderna faced a significant financial shift in the first quarter (Q1) of 2024, reporting a net loss of $1.2 billion, marking a drastic change from a net income of $79 million in the same period the previous year. The company's diluted loss per share was $3.07, compared to an earnings per share of $0.19 in Q1 2023.

For the three months ending March 31, Moderna’s total revenue was $167 million, a steep decline from $1.9 billion in the corresponding period of 2023. The decrease was largely due to reduced sales of its Covid-19 vaccine, with net product sales plummeting by 91% compared to Q1 2023.

This downturn was anticipated as the market transitions to a seasonal model for Covid-19 vaccines. During Q1 2023, Moderna had gained revenue from doses that were deferred from 2022. The cost of sales in Q1 2024 amounted to $96 million, which included $8 million in third-party royalties, $30 million in inventory write-downs, and $27 million related to unutilized manufacturing capacity and wind-down expenses. This represents an 88% decrease from Q1 2023.

Despite the quarterly loss, Moderna has maintained its full-year 2024 revenue guidance, reaffirming an expected $4 billion from its respiratory franchise. The company now forecasts around $0.3 billion in net sales for the first half of the year, reflecting the seasonal nature of the respiratory business.

Moderna's CEO, Stéphane Bancel, expressed optimism about the future, stating, "As we anticipate the launches of our Spikevax 2024-2025 formula and RSV vaccine, we are exercising financial discipline and have intensified our focus on building and utilizing AI technologies to further streamline operations and enhance productivity. With ten late-stage programs and additional new programs advancing toward pivotal studies, we continue to expect numerous product milestones this year across our vaccines and therapeutics portfolio. This is the start of a banner year for our vaccine platform as we continue to advance mRNA medicines for patients. This is just the beginning."

This development follows the company’s decision to pause its project to build a messenger ribonucleic acid (mRNA) manufacturing facility in Kenya, citing a significant decrease in Covid-19 vaccine demand across the region.

Moderna remains focused on its strategic goals despite the financial challenges in the first quarter. The company is poised to launch new vaccine formulations and is leveraging AI technology to optimize operations. Moderna’s commitment to advancing its mRNA medicine platform underscores its long-term vision, with several late-stage programs and new initiatives expected to reach pivotal study phases this year.

Overall, while the first quarter of 2024 presented financial hurdles for Moderna due to reduced Covid-19 vaccine sales, the company is steadfast in its commitment to innovation and growth within its vaccine and therapeutic portfolios.