In a surprising turn of events, Moderna reported a profit in the fourth quarter, despite the anticipated decline in sales of its Covid-19 vaccine. The pharmaceutical company’s profit amounted to $217 million, equating to 55 cents per share, contrasting with $1.47 billion, or $3.61 per share, in the corresponding period the previous year.
Financial Insights and Performance
Although analysts surveyed by FactSet had predicted a loss of 99 cents per share, Moderna exceeded expectations. Even though revenue dropped to $2.81 billion from $5.08 billion year-over-year, it surpassed analyst forecasts of $2.51 billion.
Vaccine Revenue and Market Share Growth
The Covid-19 vaccine Spikevax contributed significantly to revenue, yielding $800 million in U.S. sales and an additional $2 billion in international markets. Moreover, the quarter saw the recognition of $600 million in deferred revenue associated with Gavi, the Vaccine Alliance, highlighting Moderna’s commitment to enhancing vaccine access for children in impoverished nations.
Strategic Actions and Market Adaptation
Throughout the 2023 Covid season, Moderna successfully increased its market shares in the U.S. retail segment to 48%, up from 37% the prior year. The company proactively adjusted its approach to align with a seasonal endemic market, which involved resizing its manufacturing footprint to optimize cash flow and restructuring its commercial framework to drive sales.
