Jamie Spencer
Biotech firm Moderna (MRNA.O) reported a bigger-than-expected quarterly loss, primarily due to charges related to scaling down manufacturing as demand for its COVID-19 vaccine weakens. The company posted a quarterly loss of $2.91 per share, exceeding analysts’ expectations of a $2.68 per share loss, according to data compiled by LSEG. Last year, Moderna had reported a profit of 55 cents per share.
Manufacturing Scale-Down and Cost Reductions
Chief Financial Officer James Mock attributed the loss to a $238 million non-cash charge related to the termination of a contract manufacturing agreement. “As we looked at our manufacturing footprint, we believed we did not need that particular (manufacturer) and tried to eliminate the potential waste related to that capacity,” Mock explained, without identifying the manufacturer.
Moderna first announced plans to reduce COVID-19 vaccine production in late 2023, including at contract manufacturer Lonza’s facility in Switzerland. This was part of a broader cost-cutting initiative that lowered cost of sales by $3.2 billion last year.
Declining Sales but Beating Expectations
Moderna’s total revenue dropped nearly 66% to $966 million for the quarter, though it still surpassed analysts’ expectations of $942.84 million. The majority of revenue came from its COVID-19 vaccine, which generated $923 million, compared to just $15 million from its respiratory syncytial virus (RSV) vaccine.
Despite the drop in sales, Mock emphasized confidence in the durability of the COVID-19 market and long-term opportunities in RSV.
Stock Performance and Market Reactions
Moderna’s stock rose nearly 3% to $32.76 in morning trading, despite falling nearly 60% last year due to plummeting COVID-19 vaccine sales and lower-than-expected RSV vaccine uptake.
Shares of Moderna, along with other vaccine makers, faced additional pressure this year following the confirmation of vaccine critic Robert F. Kennedy as U.S. Health and Human Services Secretary under President Donald Trump.
CEO Stephane Bancel stated that Moderna looks forward to discussions with government officials as they assume their roles.
Cost-Cutting and Future Outlook
Moderna plans to continue reducing expenses, announcing in January that it would cut cash costs by $1 billion in 2024 and by an additional $500 million in 2026. The company also slashed its 2025 sales forecast by $1 billion.
Despite financial challenges, Moderna reiterated its full-year 2025 product sales guidance of $1.5 billion to $2.5 billion, with most revenue expected in the latter half of the year.
At the end of 2024, the company reported cash, cash equivalents, and investments totaling $9.5 billion, largely due to accounts receivable collections.
FDA Trial Hold on Norovirus Vaccine
Moderna disclosed that a late-stage trial for its norovirus vaccine has been paused by the U.S. FDA following a single adverse event related to Guillain-Barré syndrome, which is under investigation.
“The FDA needs time to review the materials we submitted and they may come back with questions,” an executive stated. However, Moderna expects the hold to have minimal impact on the trial.
Despite a challenging quarter marked by declining COVID-19 vaccine sales, manufacturing adjustments, and regulatory scrutiny, Moderna remains focused on cost-cutting and expanding its pipeline. Investors will closely watch its future discussions with government officials and the company’s ability to navigate shifting market dynamics.
