Shares in biotechnology group Moderna (MRNA) dropped 7% in early trading after it revealed a slump in revenues due to lower Covid vaccination rates.
Winter Demand
Moderna said revenues for the first quarter fell 35% to $108 million, hit by lower product sales as Covid becomes a more “normal” disease with demand more concentrated in the autumn winter months like flu. However, this still beat analyst estimates of $106.2 million.
Its Spikevax RNA-based Covid-19 vaccine recorded $84 million in sales, comprising $29 million in U.S. sales and $55 million in international sales. Its vaccine for respiratory syncytial virus, or RSV, posted sales of $2 million.
The company posted a net loss of $971 million, compared with a loss of $1.18 billion in the same period last year. On a per-share basis, the company notched a loss of $2.52 compared with estimates of a loss of $3.12 a share.
Delayed Approval
It expects demand to increase as the cold and flu season hits later this year. As a result, it reaffirmed its 2025 revenue outlook of $1.5 billion to $2.5 billion, in line with analysts’ expectations of $2.09 billion. Moderna expects most of the revenues to come in the second half of the year.
Investors were also left disappointed by Moderna revealing that it did not expect to get regulatory approval for its combination shot to protect against both COVID-19 and influenza until 2026. That’s after the U.S. Food and Drug Administration declared that it required late-stage data demonstrating the shot’s efficacy against the flu.
Moderna had previously said it hoped to launch the vaccine for the autumn respiratory disease season in 2025 or 2026. More positively, it said that it is advancing up to 10 products toward approval, including multiple cancer treatments.
Is MRNA a Good Stock to Buy Now?
On TipRanks, MRNA has a Hold consensus based on 3 Buy, 12 Hold and 4 Sell ratings. Its highest price target is $212. MRNA stock’s consensus price target is $47 implying an 75.83% upside.
