Biotechnology company Moderna, Inc. (MRNA) reported a profit for the third quarter that plunged 69 percent from last year, reflecting a drop in COVID-19 vaccines sales and higher operating expenses. Both earnings per share and revenues for the quarter missed analysts' expectations.
In pre-market activity on Nasdaq, Moderna shares are plunging $18.52 or 12.46 percent to trade at $130.10.
For the third quarter, the company reported net income of $1.04 billion or $2.53 per share, down from $3.33 billion or $7.70 per share in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $3.29 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue for the quarter declined to $3.36 billion from last year's $4.97 billion, resulting mainly due to a decline in sales of the company's COVID-19 vaccines. Analysts expected revenues of $3.53 billion for the quarter.
Product sales for the quarter decreased 35 percent to $3.1 billion from last year, primarily driven by lower sales volume due to the timing of market authorizations for our COVID-19 bivalent boosters and the related manufacturing ramp up.
Total operating expenses surged to $2.20 billion from $1.41 billion last year, primarily hurt by a charge of $333 million for inventory write-downs related to COVID-19 products, increased clinical trial-related expenses and increased headcount.
Moderna said it now has 48 programs in development across 45 development candidates, of which 35 are currently in active clinical trials.
Looking ahead, the company has already signed advance purchase agreements or APAs for product sales of approximately $18 billion to 19 billion for anticipated deliveries in 2022 following delay of $2 billion to $3 billion for deliveries into 2023, due to short-term supply constraints.
The confirmed APAs, as well as previously deferred product sales, currently represent $4.5 billion to $5.5 billion in anticipated product sales in 2023. The Company expects additional sales in key markets, including the U.S., E.U., Japan, Middle East, Latin America and Asia Pacific in 2023.
"With $13.6 billion in product sales through the first three quarters of the year, and advance purchase agreements for anticipated delivery this year now expected to produce around $18 to $19 billion of product sales, we continue to have a strong financial position as we prepare for multiple upcoming global product launches," said Stéphane Bancel, Chief Executive Officer of Moderna.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
For comments and feedback contact: editorial@rttnews.com
Business News