Moderna stock skidded Thursday after the biotech company reported light sales of its two messenger RNA-based vaccines, Spikevax and mResvia.
During the three months ended March 31, the Covid shot dubbed Spikevax generated $84 million in sales, missing expectations for $100 million, according to FactSet. The company's RSV shot, mResvia, also lagged forecasts, bringing in $2 million vs. projections for $6 million.
William Blair analyst Myles Minter had projected a more bullish $30 million for mResvia, which is intended to protect adults age 60 and older against RSV. But, he noted, the Advisory Committee on Immunization Practices — under the Centers for Disease Control and Prevention — recently recommended just a single RSV vaccine dose.
Further, Moderna is facing off with Pfizer and GSK which entered the market a year ahead of the mRNA player.
"This is in line with our thinking that not only is the RSV market contracting under restrictive ACIP recommendations, but also Moderna is negatively impacted by competition," he said in a report.
In premarket trades, Moderna stock shed 5%, trading at 27.12. Shares are trading well below their 50-day moving average.
Moderna Stock: Cost-Cutting In Focus
On a year-over-year basis, Spikevax sales plunged almost 50%, while sales of mResvia — which had no sales in the year-earlier period — plummeted nearly 87% vs. the fourth quarter.
The company said it's working to win business for Spikevax in the European Union.
Promisingly, Moderna reported lighter-than-expected losses at $2.52 per share, beating forecasts for steeper losses of $3.12 a share.
William Blair's Minter says "cost-cutting is minimizing (the) bottom-line hit." Moderna expects to lower its operating expenses by $1.4 billion to $1.7 billion, on a strict, as-reported basis, by 2027.
"We are reiterating our 2025 financial framework and announcing a cost structure that is expected to reduce our annual operating expenses by approximately $1.5 billion by 2027," Chief Executive Stephane Bancel said in a written statement. "With several Phase 3 readouts approaching and continued momentum toward 10 product approvals, we remain confident in Moderna's long-term outlook."
The company also maintained its full-year outlook despite the first-quarter sales miss. Moderna projects $1.5 billion to $2.5 billion in sales. It's important to note vaccine sales tend to spike in the second half of the year, in timing with the traditional flu and Covid vaccine campaigns.
Analysts project $2.09 billion in sales this year, including $1.92 billion from Spikevax and $119 million in mResvia sales.
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