Moderna delivers Q1 beat as pipeline progress helps cushion COVID-19 blow

02 May 2024
firstwordpharma.com
VaccinemRNAPhase 3Financial Statement
Moderna reported better-than-expected first-quarter results Thursday, with cost cuts helping offset a steep 91% year-over-year decline in COVID-19 vaccine sales.
The biotech posted a total of $167 million in revenues for the quarter, down from $1.9 billion the same time last year when its Spikevax shot was still generating substantial sales related to the COVID-19 pandemic. However, the latest sales figure did top analyst estimates of around $100 million.
Uncertainty in near-term outlook
On the bottom line, Moderna recorded a net loss of $1.2 billion, compared to $79 million in profit in the year-ago period. "Uncertainty remains around the near-term outlook, which is largely tied to COVID and could potentially limit near-term outperformance," cautioned JPMorgan's Jessica Fye.
However, the company is sticking to its full-year product sales guidance of approximately $4 billion, compared to a total of about $6.8 billion in 2023. Most of those projected revenues are expected in the second half during the typical fall virus season, according to chief financial officer James Mock.
Meanwhile, Moderna's R&D costs declined 6% year-over-year to $1.1 billion due to lower upfront collaboration payments. The company also trimmed spending on manufacturing and consultants. Michael Yee of Jefferies called it "a good sign if they can continue to manage expenses, which has been a big sticking point for investors."
Earlier this week, it pulled out of a gene-editing pact with Metagenomi as it "continues to strategically prioritise its R&D investments." CEO Stéphane Bancel said Thursday that Moderna is "looking very carefully at all investments."
Broader cancer vaccine programme
As COVID-19 sales dwindle, Moderna is counting on other pipeline programmes to reignite growth. FDA approval of its RSV vaccine mRNA-1345 is expected this month, and the company thinks it will be able to launch it in time for this fall's US vaccine campaign. It didn't provide any guidance for the shot, but some analysts project sales of around $356 million this year.
Moderna is also expanding its individualised cancer vaccine programme partnered with Merck & Co. Already in Phase III testing for melanoma and non-small-cell lung cancer, the neoantigen therapy mRNA-4157 has now started three new mid- to late-stage trials in cutaneous squamous cell carcinoma, high-risk muscle invasive bladder cancer and renal cell carcinoma, all in the adjuvant setting.
Moderna president Stephen Hoge noted these are all indications "where Keytruda has a known benefit, and where we still believe that there is an opportunity to improve upon that by driving a specific T-cell response… We have been aggressively pursuing adjuvant indications where I/O is approved and where we see an opportunity, and all three of these fit squarely in that space."
The company also disclosed that following a strategic review, it is ending its preclinical PD-L1 programme mRNA-6981, and "is no longer evaluating other mRNA candidates in this area."
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