Moderna’s earnings fall short due to increased production costs and reduced demand for Covid vaccine

Moderna Inc. (MRNA) Stock Jumps on Oppenheimer Upgrade to Outperform

Moderna, the Boston-based biotech company, has reported a 68% drop in earnings per share for Q4 2022, missing Wall Street expectations due to lower demand for its Covid-19 vaccine and costs associated with surplus production capacity. The company generated $5.1bn in revenue for the quarter, which was in line with analysts’ expectations but a 30% decrease from the same period in 2021. Moderna’s Covid vaccine remains its only product on the market, but it plans to ask the FDA to approve its vaccine protecting older adults from respiratory syncytial virus in H1 2023. The FDA has also designated Moderna’s and Merck’s personalized cancer vaccine as a breakthrough therapy, which could speed up development and regulatory review.

Moderna Misses Earnings Expectations as COVID Shot Demand Falls

Moderna’s (NSD:MRNA) shares fell by over 3% in pre-market trading following the announcement. Despite the lower demand for Covid vaccines as the pandemic eases and life returns to normal, Moderna has signed contracts worth $5bn for Covid vaccine deliveries in 2023. The company also expects additional sales in the US, Europe, and Japan this year. In 2022, Moderna sold $18.4bn in vaccines, a 4% increase from the previous year and its highest revenue during the pandemic. However, the company’s net income in 2022 decreased by 31% compared to 2021, amounting to $8.4bn. Moderna said its costs rose by 25% in Q4 2022, including $297m write-offs for vaccines that exceeded their shelf life, $376m from unused manufacturing capacity, and a $400m royalty payment to the National Institute of Allergy and Infectious Diseases.

Moderna Inc Stock Forecast

According to the average of 13 analysts, the projected target price for Moderna Inc’s stock over the next 12 months is $166.29. The company’s average analyst ratings is “Hold,” and Stock Target Advisor’s analysis of Moderna Inc’s stock signals a “Slightly Bullish” trend based on 10 positive signals and 5 negative signals. Moderna Inc’s stock closed at $158.17 in the last session, with a change of -10.78% over the past week, -18.46% over the past month, and +9.11% over the past year.

Company Overview

Moderna, Inc. is a biotechnology company based in Massachusetts that develops messenger RNA (mRNA) vaccines and therapeutics for various diseases. The company’s vaccines cover respiratory, latent, and public health diseases, and it also produces systemic secreted and cell surface therapeutics, intratumoral immuno-oncology products, and localized regenerative, systemic intracellular, and inhaled pulmonary therapeutics. Moderna has strategic alliances with multiple companies and organizations, including AstraZeneca, Merck, and the Bill & Melinda Gates Foundation. The company was founded in 2010 and was previously known as Moderna Therapeutics before changing its name in August 2018.

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