Moderna Reports Q4 Revenue Above Estimates, But Faces Continued Challenges

Moderna announced its fourth-quarter financial results on Friday, reporting revenue that surpassed analyst expectations. However, the biotech company recorded a larger-than-anticipated net loss, reflecting ongoing financial pressures and a decline in demand for its Covid vaccine. Despite these challenges, Moderna is focused on cutting costs and developing new products within its mRNA platform.

Revenue Surpasses Estimates Despite Loss

Moderna’s fourth-quarter revenue reached $966 million, slightly beating the $942.8 million analysts had forecast. However, the company reported a net loss of $1.12 billion, or $2.91 per share, marking a significant reversal from the year-ago period when it posted net income of $217 million, or $0.55 per share.

Covid Vaccine Sales Continue to Decline

A major factor contributing to the revenue decline was the continued downturn in sales for Moderna’s Covid vaccine, which fell 66% from the previous year to $923 million. International sales, once a key driver, saw a decrease as Moderna phased out advance purchase agreements with certain countries. In the U.S., the vaccine brought in $244 million, while international sales amounted to $679 million.

RSV Vaccine Shows Early Promise

Moderna’s second approved product, the RSV shot, generated $15 million in U.S. sales during the fourth quarter. This is a modest start for the vaccine, which was approved in May and launched to seniors in the fall and winter. Sales expectations for the RSV vaccine were slightly lower at $13 million, according to analysts. The RSV shot is currently approved for adults aged 60 and above in the U.S., European Union, Canada, Norway, Iceland, and Qatar, among other regions.

Cost Reduction Efforts Continue

In an effort to mitigate financial losses, Moderna made substantial cost reductions. The company’s cost of sales fell by 20% to $739 million, largely due to writedowns of unused doses of the Covid vaccine and other cost reductions. Research and development expenses decreased by 20% to $1.1 billion, with lower clinical development and manufacturing costs offsetting some increased spending on new experimental products.

Furthermore, selling, general, and administrative expenses dropped by 25% to $351 million, reflecting a more disciplined approach to operational costs.

Moderna’s Future Outlook and Pipeline

Despite the challenges of the fourth quarter, Moderna remains optimistic about the future. The company reaffirmed its full-year 2025 product sales guidance ranging from $1.5 billion to $2.5 billion, predicting a significant boost in the second half of the year. Moderna anticipates only $200 million in the first half, attributed to the seasonal demand for respiratory products.

Moderna is actively working to expand its mRNA platform, aiming for 10 new product approvals within the next three years. In the fourth quarter alone, the company submitted three mRNA products for regulatory approval, including its next-generation Covid shot, a combination shot targeting both Covid and the flu, and an RSV vaccine for high-risk adults aged 18 to 59.

Looking ahead, the FDA is expected to provide a decision on the next-generation Covid shot in May, with a potential expanded approval for the RSV shot in June. Additionally, Moderna is developing a standalone flu vaccine, a personalized cancer vaccine in collaboration with Merck, and shots for latent viruses.

Market Reaction and Challenges Ahead

The company’s stock fell over 4% in premarket trading on Friday, reflecting the challenges it faces. Shares have dropped more than 20% for the year following the January reduction in 2025 sales guidance. Moderna attributes these declines to increased competition, falling vaccination rates, manufacturing contract timing, and uncertainty surrounding CDC recommendations for revaccination.

Moderna CFO Jamey Mock emphasized that while these factors could impact sales negatively, the company is taking steps to mitigate these challenges.

Conclusion

While Moderna’s fourth-quarter results showed a significant net loss, the company’s revenue exceeded expectations, and it remains committed to cost reduction and product development. As Moderna navigates its current challenges and expands its mRNA platform, the financial outlook for 2025 remains uncertain but promising. Stay tuned for further updates on this evolving story.

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