Moderna posts Q1 2023 beat amid stronger than expected vaccine demand
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Moderna (NASDAQ:MRNA) exceeded Street estimates with its Q1 2023 financials on Thursday amid a lower-than-expected decline in demand for its COVID-19 vaccine.
The Cambridge, Massachusetts-based vaccine maker also reaffirmed its 2023 outlook for at least $5B sales from previously announced COVID-19 vaccine Advanced Purchase Agreements and projected $2B of total product sales during H1 2023, including $0.2B â $0.3B in Q2 2023.
Total revenue for the quarter dropped to $1.9B from $6.1B in the prior year period as sales of its COVID-19 shot slumped amid the waning impact of the pandemic leading to a ~69% YoY drop in product sales, which, however, exceeded Street estimates.
Meanwhile, the company's cost of sales as a percentage of product sales climbed to 43% compared to 17% in Q1 2022 after accounting for a $148M charge related to inventory write-downs due to excess and obsolete COVID-19 products.
While investments in clinical trials sent R&D expenses ~104% YoY higher to $1.1B, Moderna's (MRNA) net income fell from $3.7B in the prior year quarter to $79M exceeding Wall Street forecasts. Cash and cash equivalents also surpassed expectations to reach $3.4B marking a ~7% gain from the 2022 year-end.
 "In addition, we are encouraged by the progress of new COVID-19 vaccine contracts in the U.S. for this fall with pharmacy chains, hospital networks and multiple U.S. government agencies. Similar discussions are ongoing with Japan, the EU, and other key markets such as Australia, which recently ordered additional COVID-19 vaccines," Chief Executive StÃ©phane Bancel, remarked.
The company expects to launch RSV and flu vaccines in 2024 and projects $8B â $15B annual sales by 2027 from six major respiratory vaccine launches in the years ahead.
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