Moderna (MRNA) beat on revenues but lost more than expected as it continues to see falling demand for its COVID-19 vaccine and rushes to get new products on stream while scaling back manufacturing capacity.
MRNA posted a net loss of $1.12 billion in its Fiscal fourth quarter, or $2.91 per share. This was wider than the $2.68 loss expected by Wall Street, sending shares down over 4% pre-market.
Total revenue for the fourth quarter of 2024 was $1 billion, compared to $2.8 billion in the same period in 2023, with product sales down 66% to $938 million.
The company is pushing to launch new drugs to make up for its once-blockbuster COVID-19 vaccine and is in the middle of a major strategic cost-cutting program. MRNA cut costs by 27% compared to 2023 and by 2025 it expects to reduce costs by a further $1 billion compared to 2024.
It entered Fiscal year 2025 with two products, its COVID-19 and RSV vaccines, but anticipates “multiple approvals” for its pipeline of new drugs starting this year, according to CEO Stéphane Bancel.
“In 2025, we remain focused on driving sales, delivering up to 10 product approvals through 2027, and expanding cost efficiencies across our business,” he said. “With strong momentum in our late-stage pipeline, we anticipate multiple approvals starting this year, along with key Phase 3 readouts that will support our long-term growth.”
MRNA COVID Vaccine Sales Slump
For the full year, total revenue more than halved to $3.2 billion, compared to $6.8 billion in 2023. The decrease in total revenue was mainly due to lower sales of the Company’s COVID-19 vaccine, Moderna said in its earnings release.
While sales in the U.S. broadly held up compared to 2023, Moderna said it experienced “significantly” lower sales volumes in Europe and other international markets.
The company stuck to its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion. In January Moderna slashed its 2025 sales guidance by roughly $1 billion, sending the stock sharply lower. It cited competition in the COVID market and falling vaccination rates for the cut.
Is MRNA Stock a Buy?
The stock of Moderna has a consensus Hold rating among Wall Street analysts, based on two Buys, 10 Holds, and three Sell recommendations issued in the last three months. The average MRNA price target of $49.15 implies 54% upside from current levels, though the figures are liable to change after the earnings update.
