Moderna’s Earnings Call: Progress Amid Challenges

Moderna ((MRNA)) has held its Q1 earnings call. Read on for the main highlights of the call.

Moderna’s recent earnings call highlighted a mixed sentiment, reflecting both progress and challenges. The company has made notable strides in cost reduction and market expansion, particularly in the oncology and international vaccine sectors. However, it continues to grapple with declining revenues, significant net losses, and extended regulatory review timelines for key products.

Cost Reduction Achievements

Moderna reported a 19% reduction in combined R&D, SG&A, and cost of sales compared to Q1 2024. This marks the third consecutive quarter of double-digit year-over-year declines in these expenses, showcasing the company’s commitment to financial efficiency.

Expansion of Commercial Markets

The company has successfully expanded its commercial reach by securing approvals for its mRESVIA vaccine in Australia, Taiwan, the UK, and Switzerland, building on previous approvals in the US, EU, and Canada. This expansion signifies Moderna’s growing international presence.

Oncology Portfolio Expansion

Moderna announced the expansion of its oncology portfolio with the addition of the Checkpoint medicine program. Early data from this program is encouraging, indicating potential future growth in this critical sector.

Strong Cash Position

Despite reporting a net loss for the quarter, Moderna ended Q1 2025 with $8.4 billion in cash and investments. This strong financial position provides a buffer as the company navigates its current challenges.

Significant Revenue Decline

Total revenue for Q1 2025 was $108 million, reflecting a 35% decrease year-over-year. This decline is attributed to the seasonal nature of respiratory vaccines and lower vaccination rates.

Net Loss for the Quarter

Moderna reported a net loss of $1 billion for Q1 2025, an improvement from a $1.2 billion loss in Q1 2024. Despite the improvement, the company still faces significant financial hurdles.

COVID Vaccine Sales Decline

Net product sales were $86 million, primarily driven by COVID vaccine sales. This represents a decline from the previous year, as COVID transitions into a routine seasonal vaccination pattern.

Extended Review Timeline for Flu COVID Combination Vaccine

The FDA now requires flu vaccine efficacy data to support the application for the flu COVID combination vaccine, extending the review timeline into 2026. This delay poses a challenge for Moderna’s product rollout plans.

Forward-Looking Guidance

Moderna’s forward-looking guidance for 2025 includes expected total revenues between $1.5 billion and $2.5 billion, with projected cost of sales at approximately $1.2 billion. R&D expenses are anticipated to be $4.1 billion, while SG&A expenses are expected to be around $1.1 billion. The company aims to achieve $1.4 billion to $1.7 billion in cost reductions by 2027, focusing on expanding its product portfolio and advancing its oncology pipeline.

In summary, Moderna’s earnings call reflected a cautious optimism. While the company has made progress in cost reduction and market expansion, it continues to face significant challenges with declining revenues and extended regulatory timelines. Investors will be closely watching how Moderna navigates these hurdles in the coming quarters.