Sliding vaccine sales, new costs, shrink Moderna 4Q profit

By AP News

Share:

In this article

  • Loading...
  • Want to see what you should be buying? Check out our top picks.

Moderna’s fourth-quarter profit tumbled 70% as COVID-19 vaccine sales fell and the drugmaker caught up on a royalty payment

Earns Moderna

Moderna’s fourth-quarter profit tumbled 70% as COVID-19 vaccine sales fell and the drugmaker caught up on a royalty payment.

Moderna said Thursday that its cost of sales jumped nearly a billion dollars to $1.9 billion in the final quarter of 2022. That included a $400 million payment to the National Institute of Allergy and Infectious Diseases tied to a new license agreement started in December.

Research and development expenses also nearly doubled to $1.2 billion for the drugmaker. Moderna's pipeline of drugs under development includes a potential skin cancer vaccine it is working on with Merck.

The Food and Drug Administration on Wednesday gave that potential vaccine a “breakthrough therapy” designation, which is intended to speed the development and review of drugs that show signs of being an improvement over established treatments.

Moderna expects to start a late-stage study this year.

Overall, the drugmaker’s profit fell to $1.46 billion, or $3.61 per share, in the final quarter of 2022. Total revenue dropped 29% to $5.08 billion.

Analysts expected earnings of $4.60 per share on $5.02 billion in revenue, according to FactSet.

Moderna’s Spikevax is the company’s main source of revenue, outside of grants and money from collaborations. Sales of both Moderna's vaccine and shots made by rivals like Pfizer Inc. have slowed since 2021, when most people either were receiving their initial doses of the shots or their first boosters.

The company had said last month that it recorded $18.4 billion in sales from its COVID-19 vaccine last year. It has about $5 billion in sales of the vaccine contracted for delivery this year, and the company said Thursday it was expecting additional sales on top of that.

Shares of Moderna Inc., based in Cambridge, Massachusetts, fell 2%, or $3.45, to $154.72 before markets opened.

Share:

In this article:

Companies:
Moderna
Merck and Co

Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for VTM Updates

Form submitted successfully!