By Patrick Wingrove and Christy Santhosh
(Reuters) -Biotech firm Moderna reported a bigger-than-expected quarterly loss on Friday, hit by a charge related to its efforts to scale down manufacturing amid weakening demand for its COVID-19 vaccine.
The company reported a quarterly loss of $2.91 per share, compared to analysts’ expectations of a $2.68 per share loss, according to data compiled by LSEG. The company posted a profit of 55 cents per share last year.
Finance chief James Mock in an interview attributed the loss to a $238 million non-cash charge related to the termination of its agreement with a contract manufacturer.
«As we looked at our manufacturing footprint, we believed we did not need that particular (manufacturer) and tried to eliminate the potential waste related to that capacity,» he said, declining to identify the manufacturer.
Moderna first announced it would scale down manufacturing of its COVID-19 vaccine, Spikevax, in late 2023, including at contract drug manufacturer Lonza’s facility in Switzerland, as part of a larger cost-cutting effort that reduced cost of sales by $3.2 billion last year.
Moderna’s total revenue fell nearly 66% to $966 million for the quarter, but beat analysts’ expectations of $942.84 million. Most of those sales were generated by the company’s COVID shot, which brought $923 million, compared to $15 million for its respiratory syncytial virus (RSV) vaccine.
Mock said on a call with analysts that the company believed the COVID market would remain durable over time and there was still long-term opportunity to expand its presence in RSV.
Shares of Moderna rose nearly 3% to $32.76 in morning trading.
Its stock fell nearly 60% last year as sales of its COVID-19 vaccine crashed from their peak during the pandemic and its RSV shot got less uptake than expected.
Shares of Moderna, along with other vaccine makers, dropped further this year as lawmakers advanced U.S. President Donald Trump’s pick for Health and Human Services Secretary, Robert F. Kennedy, through Congress. Kennedy, a vaccine critic, was confirmed to the role on Thursday.
When asked on the analyst call whether Moderna had been speaking to Kennedy, chief executive officer Stephane Bancel said they looked forward to discussions with government officials as they are confirmed to their roles.
The vaccine maker plans to keep lowering expenses this year, saying in January it would cut cash costs by $1 billion, as well as by an additional $500 million in 2026. It also slashed its 2025 sales forecast by $1 billion at that time.
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