Moderna reports US$162M quarterly profit and raises sales outlook

A US$162 million third-quarter profit replaced a US$200 million loss a year earlier as Moderna, Inc. NASDAQMRNA reported results on Friday. Revenue rose 29 per cent to US$1.3 billion, primarily because of higher international COVID-vaccine sales.

The Nov. 6 release raised annual revenue-growth guidance to 15 to 25 per cent from up to 10 per cent. Cash and investments reached US$8 billion at Sept. 30, helped by US$2.6 billion in net proceeds from convertible notes and related capped-call transactions.

Moderna is a large Cambridge, Mass.-based biotechnology company developing messenger RNA medicines and selling vaccines internationally.

Shares last closed at US$241.46 in New York on Nov. 5, according to Google Finance's NASDAQMRNA page as of 4 p.m. EST. That close predates the earnings release.

Lower Research Spending Supports Quarterly Profit

Third-quarter research and development spending fell 27 per cent to US$583 million. Moderna attributed the decline primarily to lower clinical-development costs after completing or winding down certain late-stage infectious-disease studies, alongside cost efficiencies.

Cost of sales rose 54 per cent to US$318 million in the quarter, reflecting higher product volumes and other manufacturing costs. Selling, general and administrative spending increased 5 per cent to US$282 million.

Diluted earnings were US$0.38 a share for the third quarter, compared with a US$0.51 loss a year earlier. The quarterly profit came as Moderna reduced its annual research-spending forecast to approximately US$2.7 billion from US$2.9 billion.

The September liquidity increase included financing proceeds, while cash was used in operations. Moderna said most third-quarter product sales remained uncollected at quarter-end, creating a seasonal working-capital demand.

A US$950 million litigation-settlement payment also reduced cash during the third quarter. Separately, the annual cost-of-sales forecast includes a US$0.9 billion non-recurring settlement charge.

Year-end 2026 cash and investments are now forecast at US$8.1 billion to US$8.3 billion. Moderna attributed the higher forecast to improved operational execution and convertible financing.

That year-end forecast excludes further drawdowns from approximately US$0.9 billion remaining available under its credit facility. Available borrowing capacity therefore sits outside the projected cash-and-investments balance.

Respiratory Vaccines Face Different Launch Timetables

The Nov. 6 update said the FDA approved mFLUSIVA in August for adults aged 50 to 64, with accelerated approval for those aged 65 and older. Its U.S. launch this influenza season is limited because approval came after the annual contracting cycle.

Moderna also reported Canadian approvals for its influenza vaccine and flu/COVID combination vaccine. It continues to await FDA guidance about refiling the combination vaccine in the United States.

The same update said the Phase 3 norovirus vaccine trial missed the interim criteria for early success. Moderna does not plan another cohort this season and intends to discuss the programme's path with health authorities.

Vaccine-sector peer Pfizer Inc. NYSEPFE also raised its annual sales outlook in its Nov. 3 earnings release. Its revised range is US$62 billion to US$64 billion.

Read more: Pfizer raises sales outlook to US$62B to US$64B

For broader sector context, the iShares Biotechnology ETF NASDAQIBB closed at US$221.13 on Nov. 4, according to Google Finance as of 4 p.m. EST. That benchmark quote also predates Moderna's results.

"Looking ahead, we anticipate additional intismeran readouts, pivotal data in propionic acidemia and further regulatory approvals as we advance our pipeline and build a more diversified company," Moderna chief executive Stéphane Bancel said in the release.

Read more: Moderna ascends more than 175 per cent from cancer vaccine breakthrough

Moderna's next scheduled investor event after Friday's earnings call is its Nov. 12 Analyst Day.