Biotech
Monday, January 8th, 2024 3:25 pm EDT
Key Points
Decline in Covid Vaccine Sales: Moderna reported a significant decrease in Covid vaccine sales, with a plunge of about two-thirds in 2023 to $6.7 billion. This drop was attributed to decreased demand as fewer people opted for an updated version of the Covid jab.
Financial Impact and Market Share: Despite the decline in sales, Moderna’s revenue from the Covid vaccine met the company’s forecast for the year. The revenue from shots, which was over $18 billion in 2022, fell to $6.7 billion in 2023. Moderna mentioned that it won 48% of the U.S. Covid vaccine market share in 2023, an increase from the 37% market share in 2022.
Future Outlook and Diversification: Moderna expects a further drop in sales from the Covid vaccine in 2024 and reiterated its full-year companywide sales guidance of approximately $4 billion. The company anticipates returning to sales growth in 2025 with the launch of new products. Moderna is currently developing 45 products, and it aims to achieve a “break-even” point by 2026, highlighting plans for diversification and the potential approval of new products, such as a combination shot for Covid and flu.
Moderna reported a significant decline in Covid vaccine sales for 2023, with revenue plunging by about two-thirds to $6.7 billion. This marked a stark contrast from the more than $18 billion in sales booked in 2022. The drop reflects waning demand for Covid products as cases subsided and public concern diminished. Despite the substantial decline, Moderna’s revenue met its forecast for the year. The company’s shares had experienced a nearly 45% decrease in 2023 due to weakened demand for its Covid shot, which stands as its only commercially available product. Of the revenue generated, approximately $6.1 billion was attributed to vaccine sales, while an additional $600 million was deferred revenue related to Moderna’s collaboration with Gavi, a global vaccine organization. The company had previously forecasted at least $6 billion in full-year Covid vaccine sales during its third-quarter earnings report in November. Moderna expects a further drop in sales from the Covid vaccine in 2024, reaffirming its companywide full-year sales guidance of approximately $4 billion. The guidance includes revenue from Moderna’s vaccine against respiratory syncytial virus (RSV), which may receive FDA approval in April. The company anticipates a return to sales growth in 2025 with the launch of new products. Moderna is currently developing 45 products, nine of which are in late-stage trials, including a combination shot targeting both Covid and the flu, with potential approval as early as 2025. The company aims to “break even” by 2026.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/08/moderna-covid-vaccine-sales-plunge-in-2023-but-meet-company-forecast.html
