Moderna reported second-quarter losses and plummeting sales Thursday, and MRNA stock dipped despite boosting its outlook for the year.
The company is working to launch an updated Covid booster shot this fall. Now, Moderna expects $6 billion to $8 billion in full-year sales. Most of those sales are expected in the fourth quarter. The updated outlook easily beats Moderna's first-quarter call for around $5 billion in sales this year, and is just below Wall Street's forecast for $7.06 billion.
On the stock market today, MRNA stock edged down 0.2% to 109.95.
Overall, Moderna's second-quarter sales crashed 93% to $344 million, but beat the forecast of analysts polled by FactSet for $308 million. Moderna noted lower demand for its Covid vaccine, the company's only commercial product.
Moderna also reported a $3.62 per-share loss, reversing from a gain of $5.24 in the year-earlier period. But that beat analysts' call for a loss of $3.93 per share.
MRNA Stock: Updated Covid Booster
The updated booster could help bolster demand for Covid vaccines. The current booster shot aims to block the BA.4 and BA.5 subvariants of omicron, as well as the original strain. But those strains no longer account for any cases in the U.S.
The updated shot will target the XBB.1.5 subvariant of omicron. From July 9-22, that descendant of omicron accounted for 12.3% of sequenced Covid cases in the U.S., according to the Centers for Disease Control and Prevention.
A newer subvariant called XBB.1.16 is now dominant, accounting for 14.8% of cases over the same time period. Moderna says the shot has shown the potential to also block the dominant strain.
Moderna says 70% of sales in the second half of 2023 will take place in the fourth quarter. The prediction is based on $4 billion from existing agreements and $2 billion to $4 billion in additional sales from the U.S., Japan, Europe and other countries. MRNA stock analysts are calling for a $2.44 loss per share and $7.06 billion in sales.
"The U.S. commercial team appears to be making strong progress to get new contracts in place for this fall," Third Bridge analyst Lee Brown said in a note to clients.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
