Moderna, Inc. (NASDAQ:MRNA) showcased robust performance in the fourth quarter of 2023, reporting earnings of 55 cents per share, surpassing the Zacks Consensus Estimate of a loss of 78 cents. Despite an 85% decline in earnings, the company’s positive earnings came as a surprise to investors, propelling its shares up by 6.1% in pre-market trading on Feb 22.
Revenues for the quarter stood at $2.81 billion, outperforming the Zacks Consensus Estimate of $2.55 billion. However, total revenues experienced a 45% decline year-over-year, primarily attributable to lower sales of the COVID-19 vaccine during the quarter.
Moderna’s performance during the fall 2023 COVID season was notable, as the company expanded its cumulative market share in the United States to 48%, up from 37% in 2022.
The company’s revenue streams were diversified, with product sales, mainly from COVID-19 vaccines, witnessing a 43% year-over-year decrease to $2.79 billion. Grant and collaboration revenues were $18 million compared to $225 million in the same period last year.
Operating expenses saw an uptick, with selling, general, and administrative expenses increasing by 25% year over year to $470 million. Similarly, research and development expenses rose by 16% to $1.4 billion, primarily due to increased clinical manufacturing activities.
For the full year 2023, Moderna reported revenues of $6.8 billion, reflecting a 64% decline year over year. The company reported a loss of $12.33 per share for the year, compared to earnings of $20.12 in 2022.
Looking ahead, Moderna reiterated its product revenue guidance for 2024, expecting around $4 billion in product revenues, driven by COVID-19 vaccine sales and the launch of its RSV vaccine. The company also maintained its guidance for R&D and SG&A expenses, as well as capital expenditure, with expectations to end 2024 with a cash balance of approximately $9 billion.
Moderna continues to advance its pipeline, with 45 mRNA-based investigational candidates targeting various indications, including cancer. Notably, mRNA-1345, the company’s RSV vaccine, is currently under FDA review for use in older adults, with a decision expected before May 12, 2024.
The company is poised to report several data readouts in 2024, including pivotal late-stage studies on mRNA-1283, its next-generation COVID-19 vaccine, mRNA-1083, and mRNA-1647. Additionally, Moderna’s INT therapy, mRNA-4157, is progressing well, with two pivotal phase III studies initiated in melanoma and non-small cell lung cancer indications.
Overall, Moderna’s strong performance in Q4, coupled with its promising pipeline and strategic initiatives, reaffirms its positive outlook in the evolving healthcare landscape.
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