Moderna Inc shares fell 6.5% on Thursday after the firm disclosed a revenue loss and reduced production of its COVID-19 vaccine, Spikevax, due to decreasing demand.
According to The Times, Moderna reported a $3.6 billion loss after taxes in the third quarter of 2023.
Its revenue dropped by 46% annually to $1.83 billion, a decline the business attributed to a decline in vaccination sales.
The company stated that it reduced its manufacturing of the Covid-19 vaccination and tax evaluation allowance, which was a major contributing factor in the fall.
Moderna’s shares dropped to a three-year low when the company’s quarterly report was released.
Moderna’s CEO, Stéphane Bancel, revealed that the company has expanded its production infrastructure dramatically in order to make its Covid-19 franchise profitable through 2024 and beyond.
He said, “We were fixated on ramping up production to provide as many doses as we could to treat as many people as we could throughout the pandemic. It is also crucial to shrink the business when we enter an endemic environment.”
Moderna is a pharmaceutical and biotechnology behemoth best known for producing vaccinations, particularly the mRNA COVID-19 vaccine. The World Health Organisation has licensed the COVID-19 vaccine, Spikevax, for use in 88 countries and for 70 trials in 24 countries.
Spikevax was one of the seven Covid-19 vaccinations that were authorized for use in Nigeria.
Among the S&P 500, Moderna performed the worst in October. They issued a warning regarding the unpredictability of the demand for COVID-19 vaccinations in the current year.
This warning was issued soon after Pfizer lowered its forecast, mostly because of the COVID-19 product’s effects.
The company projects that its revenue in 2024 will be close to $4 billion. Nevertheless, 2024 sales estimates have fallen short of analysts’ predictions.
The business projects that sales of its Covid-19 injection and its Respiratory Syncytial Virus vaccine, which is scheduled to launch in 2024 and has demonstrated 82.4% efficacy, would account for the majority of revenue in the second half of the year.