Modern on Friday registered income from the fourth quarter that exceeded the estimates, but lost more than expected by the period, since the biotechnological company continues to reduce the costs and demand of its Covid vaccine falls.
Mark another quarter of the growth pain for the company, which is competing to launch new products and recover from the rapid decrease in its Covid business once Booming.
Modern shares rose more than 3% on Friday.
Modern registered a net loss of $ 1.12 billion, or $ 2.91 per share, for the fourth quarter of 2024. That is compared to the net income of $ 217 million, or 55 cents per share, reported for the period of the previous year.
The company said the quarterly loss includes a gasoline charge of approximately $ 238 million related to the completion of a contract manufacturing agreement.
In an interview, Modern Financial Director Jamey Mock said one of the most important conclusions of the company's full year results is that he reduced costs by 27% compared to 2023. At the end of 2025 , Modern hopes to reduce costs by $ 1 to $ 1 billion compared to 2024.
Modern reiterated its full -year 2025 product sales guide from $ 1.5 billion to $ 2.5 billion, most of which will come in the second half of the year. Modern hopes that they only reach sales during the first half of the year due to the seasonal demand for respiratory products, which generally increase in autumn and winter.
The company reduced its sales guide of 2025 in approximately $ 1 billion in January, which caused its shares to be planted. The action has now dropped more than 20% for the year.
At that time, Modern said greater competition in the Covid market, the fall of vaccination rates, the time around manufacturing contracts with a handful of countries and the uncertainty about which advisors to the centers for control and control and Disease prevention would recommend for the revaccination of respiratory syncitial viruses.
“If all those potential winds against hit, that is what would lead us to the low extreme of our guide,” Mock told CNBC, adding that the company expects to “fight” the challenges.
This is what Modern reported for the fourth quarter that ended on December 31 Compared to what Wall Street expected, based on a LSEG analysts survey:
- Loss by action: $ 2.91 against an expected loss of $ 2.68
- Revenue: $ 966 million compared to $ 942.8 million
Modern registered sales of the fourth quarter of $ 966 million, less than half of the $ 2.8 billion recorded during the same period of the previous year.
The vast majority of that total came from its Covid shot, which raised $ 923 million, 66% less than the previous year. That includes $ 244 million in US sales and $ 679 million international markets.
Analysts expected the JAB to obtain $ 909 million in sales for the quarter, according to estreets compiled by Streetacount.
Modern said the decrease was mainly due to the previous launch of the new iteration of its Covid Shot last year, which changed sales to the third quarter. The US Food and Medicines Administration approved the new vaccine three weeks before 2023, allowing modern “to satisfy demand more effectively before the fourth quarter,” the company added.
Covid vaccines sales fell internationally because the company continued to eliminate anticipated purchase agreements with certain countries, according to modern.
The income of the company's fourteenth also included $ 15 million in sales from the US of its RSV shot, which was implemented in older people in autumn and winter after winning approval in May. It is the second approved modern product after its Covid vaccine.
Analysts were waiting for sales of $ 13 million for the RSV vaccine, according to Streetacount estimates. Modern RSV shot is approved so far for adults 60 years or older in the United States, the European Union, Canada, Norway, Iceland and Qatar, among other countries.
The company is betting on a pipe built around its Messenger RNA platform, which is the technology used in both products. Modern plans to reinforce its portfolio with 10 new product approvals in the next three years.
During the fourth quarter, Modern presented three RNM products for regulatory approval, including its next -generation COVID shooting “, the combination of combination addressed to COVID and the flu vaccine and RSV for high -risk adults from 18 to 18 to 59 years. Modern awaits a decision of the FDA decision in the next -generation COVID shot in May, and a possible extended approval for the RSV shot in June, according to Mock.
Modern is also developing an independent flu vaccine, an vaccine against personalized cancer with merk and dull viruses, among other products. Some of these products will have data readings at the end of this year, Mock said.
The cost of sales for the fourth quarter was $ 739 million, 20% less than the same period a year ago. That includes $ 193 million in unused dose writings of the Covid vaccine, among other costs.
The research and development expenses fell 20% to $ 1.1 billion compared to the same period in 2023. Modern said that the decrease was mainly due to lower clinical development and manufacturing expenses in their Covid, RSV, Frus, Frus and Combination Shot, and partially compensated for greater expense. In other new experimental products.
Meanwhile, sales expenses, general and administrative for the period fell 25% to $ 351 million compared to the fourth quarter of 2023. SG expenses and generally include the promotion, sale and delivery costs of products and services of a company.
