The biotech company Moderna Inc. reported demonstrating a net income of $217 million for the final quarter of 2023, which leveled earnings at 55 cents per share. When compared with the year-ago period, which saw a net income of $1.47 billion, or $3.61 per share, this year’s figures show a significant decrease. Despite this, Moderna’s sales amount surged to $2.81 billion, primarily driven by lower vaccine volumes. Moderna recognized $600 million in deferred revenue related to their work with the global vaccine organization Gavi. However, the company’s chief financial officer, Jamey Mock, disclosed that the deferred revenue should not be considered as the main factor behind the impressive earnings. Mock emphasized instead that the company is more enthusiastic about its lower-than-expected cost of sales, which contributed to their positive earnings in the fourth quarter.
The company also announced that its full-year Covid vaccine earnings will decrease in 2024. With a line-up of 45 products under development, including a cancer vaccine and a combination shot targeting Covid and the flu, Moderna seeks to return to sales growth in 2025, hoping for break-even by 2026. Moreover, the biotech company envisions cost-reduction measures for 2024 and is prone to increase its discipline. Despite Moderna’s intentions to overcome challenges and achieve its targets, concerns have arisen regarding the decrease in sales from the Covid shot and the surge in deferred revenue.
In conclusion, the fourth-quarter earnings of Moderna Inc. exceeded analysts’ expectations, despite a 43% drop in its Covid sales. Moderna’s vision for the future includes cost-reduction measures, the development of a new product line, and a hope to return to sales growth by 2025.
