01—Abstract
Summary
Summary of the 10-Q filed August 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Moderna, Inc. reported its second-quarter 2024 financial results, indicating a significant decline in net product sales compared to the prior year, primarily driven by the evolving COVID-19 vaccine market transitioning to a seasonal commercial pattern.
Total revenue for the quarter was $241 milliona, down 30% year-over-year, with net product sales at $184 million. The company experienced a net loss of $1.28 billion ($3.33 per share) for the quarter, a slight improvement from the $1.38 billion loss ($3.62 per share) in the same period last year. Operating expenses decreased by 27% to $1.60 billion, largely due to a substantial reduction in cost of sales.
Research and development expenses saw a modest increase, while selling, general, and administrative expenses decreased. Key developments include the FDA approval of their RSV vaccine, mRESVIA (mRNA-1345), in May 2024, marking their second commercial product.
The company also advanced its pipeline with positive Phase 3 data for its next-generation COVID-19 vaccine candidate (mRNA-1283) and a combination influenza/COVID-19 vaccine candidate (mRNA-1083). Despite the revenue decline from COVID-19 vaccines, Moderna maintains a strong cash position and believes it has sufficient resources to fund operations for at least the next 12 months, though future operational cash flows are expected to remain negative due to continued investment in its pipeline.
02—Key points
Key Highlights
- Net product sales decreased 37% year-over-year to $184 million in Q2 2024, primarily due to the transition to a seasonal commercial market for COVID-19 vaccines.
- The company reported a net loss of $1.28 billion ($3.33 per share) for Q2 2024, an improvement from the $1.38 billion loss ($3.62 per share) in Q2 2023.
- Cost of sales significantly decreased by 84% year-over-year to $115 million in Q2 2024, driven by lower sales volume and reduced inventory write-downs and unutilized capacity.
- FDA approval was granted for mRESVIA (mRNA-1345), Moderna's RSV vaccine, in May 2024, adding a second commercial product to their portfolio.
- Research and development expenses increased by 6% to $1.22 billion in Q2 2024, supporting pipeline advancement including next-generation COVID-19 and combination flu/COVID vaccines.
- Moderna maintains a strong liquidity position with $2.48 billion in cash and cash equivalents and $8.34 billion in investments as of June 30, 2024, and expects these resources to be sufficient for at least the next 12 months.
- The company is preparing for the 2024-2025 COVID-19 vaccination season with updated vaccine formulations targeting KP.2 and JN.1 strains.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 1, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $241.00M$344.00M | −29.9% |
| Cost of Revenue | $115.00M$731.00M | −84.3% |
| Gross Profit | $126.00M-$387.00M | +132.6% |
| R&D Expenses | $1.22B$1.15B | +6.4% |
| Operating Expenses | $1.60B$2.21B | −27.5% |
| Operating Income | -$1.36B-$1.87B | +27.0% |
| Net Income | -$1.28B-$1.38B | +7.3% |
| EPS (Basic) | $-3.33$-3.62 | +8.0% |
| EPS (Diluted) | $-3.33$-3.62 | +8.0% |
| Shares Outstanding (Basic) | 384.00M381.00M | +0.8% |
| Shares Outstanding (Diluted) | 384.00M381.00M | +0.8% |
05—Questions
Frequently Asked Questions
What is the primary reason for the significant decrease in net product sales?
The primary reason for the significant decrease in net product sales is the ongoing transition of the COVID-19 vaccine market from a pandemic-driven demand to a seasonal commercial pattern. This has resulted in lower sales volumes, particularly in regions outside the United States, and a general reduction in demand during the first half of the year, consistent with seasonal vaccine cycles.
What are the key developments regarding Moderna's product pipeline and new commercial products?
Moderna's key developments include the FDA approval of their RSV vaccine, mRESVIA (mRNA-1345), in May 2024, which is their second commercial product. Additionally, their next-generation COVID-19 vaccine candidate (mRNA-1283) and a combination influenza/COVID-19 vaccine candidate (mRNA-1083) have demonstrated positive Phase 3 trial results, indicating potential future growth drivers.
How is Moderna managing its R&D and SG&A expenses in light of revenue changes?
Research and development expenses saw a modest increase in Q2 2024 to support pipeline advancement, particularly for late-stage candidates. Selling, general, and administrative expenses decreased year-over-year, reflecting cost discipline and efficiencies gained by reducing reliance on external consultants and bringing functions in-house. The company anticipates a modest reduction in overall R&D expenses for 2024 compared to 2023 and expects SG&A expenses to be slightly lower than 2023 levels.
What is Moderna's current liquidity position and outlook for funding operations?
Moderna maintains a strong liquidity position with $2.48 billion in cash and cash equivalents and substantial investments totaling $8.34 billion as of June 30, 2024. The company believes these resources, along with expected cash generated from product sales, will be sufficient to fund its projected operations and capital expenditures for at least the next 12 months. However, they anticipate continued negative cash flows from operations due to significant ongoing investments in their product pipeline and development.
06—Continue