Moderna, a key player in the pharmaceutical industry, reported fourth-quarter sales amounting to $966 million, a notable decrease from the $2.8 billion recorded during the same period last year. This significant drop in sales was primarily attributed to a 66% decline in Covid vaccine sales, which fell to $923 million. The decline resulted from an earlier launch of the latest version of its Covid shot, shifting sales into the third quarter. Despite these challenges, Moderna's revenue surpassed estimates, although the company faced a larger-than-expected net loss of $1.12 billion for the period.
Moderna's financial results reveal a complex picture of success and setbacks. The company's Covid vaccine, a major revenue driver, saw a substantial dip, exacerbating its financial performance. However, Moderna made strides in other areas, notably with its RSV shot, which generated $15 million in U.S. sales for the quarter, surpassing analyst expectations of $13 million. This success highlights the potential for diversification beyond Covid-related products as a strategic avenue for growth.
The company's fourth-quarter loss includes a significant non-cash charge of approximately $238 million related to ending a contract manufacturing agreement. Despite these losses, Moderna managed to cut costs in several areas. Selling, general, and administrative expenses decreased by 25% to $351 million compared with the prior year's fourth quarter. Additionally, research and development expenses dropped by 20% to $1.1 billion during the same period.
Moderna is strategically positioning itself for future growth by focusing on new product developments and regulatory approvals. The company anticipates a decision from the U.S. Food and Drug Administration (FDA) on its "next-generation" Covid shot in May. Furthermore, Moderna expects potential expanded approval for its RSV shot by June, signaling a promising future for its vaccine portfolio.
Looking ahead, Moderna reiterated its full-year 2025 product sales guidance, projecting revenues between $1.5 billion to $2.5 billion, with a significant portion expected in the second half of the year. The company remains optimistic about its long-term prospects but acknowledges potential challenges that could impact its performance.
"Should those potential headwinds all hit, that's what would bring us to the low end of our guidance," said Jamey Mock.
Moderna's cost-cutting measures have been effective in managing financial pressures amid fluctuating sales figures. The company's cost of sales for the fourth quarter stood at $739 million, reflecting a 20% decrease from the same period last year. This reduction underscores Moderna's commitment to operational efficiency while navigating a challenging market environment.