Covid Modern (mRNA) Q1 Earnings 2022

Moderna sold $5.9 billion of its COVID vaccine in the first quarter, beating revenue and profit expectations.

Shares of the biotech company were up more than 7% in premarket trading on Wednesday, before falling. Shortly after the market opened, its shares were trading with a fall of more than 1 percent.

Moderna maintained its full-year guidance of $21 billion in COVID vaccine sales. This guidance is based on agreements signed with governments and does not include any orders from the US, so the final number could be higher.

However, CFO David Melin said there is uncertainty in 2022 sales guidance. Covax, an international coalition that helps procure shots for some countries, this year opted against using the additional dosage option. Sales guidance still includes some contracted volume from Kovax, but the group needs to confirm demand, Melin said.

Moderna’s first-quarter vaccine sales more than tripled from the same period last year, when it had $1.7 billion in sales shortly after the shots first rolled out. Spikevax, the company’s only commercially available product, is a COVID vaccine for adults 18 years of age and older.

CEO Stefan Bansel said Moderna expects stronger vaccine sales in the second half of the year as the government orders more shots to prepare for fall vaccination campaigns. Bansel said Moderna expects to receive regulatory approval at the end of the summer for a redesigned vaccine that targets mutations on the Omicron variant in addition to the original strain that emerged in Wuhan, China in 2019.

“The virus is mutating to become more and more contagious, and immunity to it is decreasing,” Bunsell told CNBC’s Meg Tyrrell in an interview on Squawk Box. “Promoting people in the fall with a better adapted vaccine is going to be really important, which we’re working for.”

Moderna reported net income of $3.66 billion for the quarter, more than three times the $1.2 billion it reported in the same period last year.

Here’s how the company fared compared to Wall Street’s expectation, based on average estimates from analysts compiled by Refinitiv:

  • Adjusted EPS: $8.58 per share, versus $5.21 expected
  • Revenue: $6.07 billion, versus $4.62 billion expected

Moderna’s cash pile grew to $19.3 billion at the end of March, up from $17.6 billion in December. Bansel said Moderna’s first priority is to invest in its product pipeline, but the company is actively looking at M&A opportunities around the world.

“In terms of M&A, I can tell you that our team has never been this busy,” Bansal told analysts during Moderna’s earnings call. “They’re seeing a lot of opportunities literally around the world. We won’t hesitate to invest in expanding the platform through technology or products.”

Moderna plans to release data in June on its vaccine that also targets Omicron, President Stephen Hoge told analysts during the call on Wednesday.

Current vaccines, which target only the Wuhan strain, are becoming less effective at preventing mild disease because highly mutated variants such as Omicron evade antibodies that prevent infection. Hoge said, although the current shots still provide strong protection against serious illness and death, Moderna believes a vaccine that contains Omicron would provide broad immunity against Covid as the virus continues to evolve. Is.

The Food and Drug Administration’s advisory committee will meet on June 28 to discuss whether the US needs to adopt a redesigned vaccine that targets mutations on the virus. Bansel told CNBC that the turnaround would be tough if the FDA decides Americans need a new vaccine for the fall. Moderna and other vaccine makers will only have July to order input and produce tens of millions of doses.

“If you look at the timeline, I don’t think any manufacturer will be ready in August to fill the channel with the product,” Bansal said.

Last week, Moderna asked the FDA to authorize a two-dose vaccine for children aged six months to 5 years, the only age group left in the US not yet eligible for a shot. The biotech company is also asking the FDA to authorize its shots for children 6 to 11 years old and teens 12 to 17 years old. According to the company’s press release, Moderna expects to submit an FDA application for its pediatric vaccines in the next two weeks.

The FDA advisory committee has set several dates in June to review submissions on COVID vaccines for children. Bansal told CNBC on Wednesday that Moderna is working towards a June launch for Shots.

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