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Moderna (MRNA) Beats on Q1 Earnings, Ups Vaccine Sales View
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Moderna Inc. (MRNA - Free Report) reported earnings of $2.84 per share for the first quarter of 2021, beating the Zacks Consensus Estimate of $2.04. The company had incurred a loss of 35 cents per share in the year-ago quarter. The reported quarter is the first profitable quarter for the company, owing to the success of its COVID-19 vaccine, mRNA-1273.
Revenues in the quarter were $1.94 billion, slightly missing the Zacks Consensus Estimate of $1.97 billion. In the year-ago quarter, revenues were $8 million. The significant increase in revenues was driven by sales of its coronavirus vaccine, which is now approved for temporary/emergency use in several countries. Moreover, grants from an agreement with Biomedical Advanced Research and Development Authority (“BARDA”) related to development of the COVID-19 vaccine also drove revenues.
Despite strong first-quarter results, Moderna’s shares were down 1.4% on May 6 presumably due to reports of waiving off intellectual property rights for COVID-19 vaccines and lower-than-expected revenues. Per a Reuters article, the U.S. government has stated that it would support such a waiver to help speed up the end of the pandemic. Investors’ sentiment was likely dampened as a potential patent waiver may hurt future product sales for Moderna. However, shares of the company have surged 53.5% so far this year against the industry’s 6.8% decrease.
Quarter in Details
In December, Moderna received approval for emergency use of its coronavirus vaccine, mRNA-1273. With this approval, the company got its first commercial product and recorded product revenues for the first time. The company received emergency use approval for mRNA-1273 in several other countries including European Union so far in 2021.
Product sales, entirely from COVID-19 vaccine, were $1.73 billion during the quarter.
Grant revenues were $194 million compared with $4 million in the year-ago quarter. Please note that the company has received a funding commitment of up to $955 million from BARDA to develop its coronavirus vaccine candidate in 2021.
Collaboration revenues were $10 million, compared with $4 million in the year-ago quarter. The company earns collaboration revenues from agreements with several big pharma/biotech companies including AstraZeneca (AZN - Free Report) , Merck (MRK - Free Report) and Vertex Pharmaceuticals (VRTX - Free Report) .
Selling, general and administrative expenses were $77 million compared with $24 million in the year-ago quarter. The significant increase was primarily attributable to increased headcount and commercialization-related activities for mRNA-1273 vaccine.
Research & development expenses were $401 million compared with $115 million in the year-ago period. The rise was largely due to increased higher clinical development costs for mRNA-1273.
The company ended the quarter with $8.2 billion in cash and cash equivalents, compared with $5.25 billion as of Dec 31, 2020.
Coronavirus Vaccine Update
Moderna reported that it has delivered 102 million doses of mRNA-1273 during the first quarter across the globe.
Meanwhile, the company raised the lower end of its global manufacturing target for 2021 from 700 million doses to 800 million doses. The company expects to supply 800 million to one billion doses in 2021. The company anticipates to deliver 200 million to 250 million doses during the second quarter.
Moderna anticipates demand for high-efficacy mRNA vaccines and variant boosters to increase in 2022. The company is currently investing to support supply of up to 3 billion doses of its COVID-19 vaccine in 2022. It previously expected to supply 1.4 billion doses next year. The company is engaged in discussion with governments of different countries, who have already signed advance purchase agreements for 2021, for signing deals for 2022. It is also focusing on adding agreements with new countries for 2022 as well as 2023.
Meanwhile, Moderna shared updated data from the phase III COVE study that had supported emergency use authorization for mRNA-1273 last year. The updated data demonstrated that the vaccine’s efficacy — 90% across all cases and 95% against severe cases — was maintained after median follow-up of approximately six months post the second dose. Moreover, antibodies elicited by the vaccine persisted for six months, indicating that the vaccine will provide protection for at least six months against SARS-CoV-2. Meanwhile, the company is planning to submit a biologics license application, seeking full approval for mRNA-1273, with the FDA later this month.
The company has also started developing mRNA-1273 in younger patient population. A phase II/III study is evaluating it in adolescents. Initial data from the study demonstrated vaccine efficacy of 96% in seronegative participants, who have received at least one injection.
A phase II study is evaluating mRNA-1273 in pediatric population, who are aged 6 months to 11 years. A late-stage study is evaluating the vaccine in adults with a kidney or liver transplant. A phase I study is evaluating the company’s next-generation COVID-19 vaccine candidate, mRNA-1283.
A phase II study is evaluating a booster dose of mRNA-1273 or variant-specific vaccine candidate, mRNA-1273.351, in previously vaccinated individuals. Initial data from the study showed that the booster dose of either vaccine candidates increased neutralizing antibody titer responses against SARS-CoV-2 as well as two variants of concern, B.1.351 and P.1.
Raised 2021 Guidance
Moderna raised its guidance for product sales in 2021 that it had provided on the fourth-quarter earnings call. The company anticipates product sales to be $19.2 billion in 2021, compared with the previous guidance of $18.4 billion.
The company expects its operating expense to increase sequentially every quarter in 2021 to support commercial and research and development activities related to COVID-19 vaccines.
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Moderna (MRNA) Beats on Q1 Earnings, Ups Vaccine Sales View
Moderna Inc. (MRNA - Free Report) reported earnings of $2.84 per share for the first quarter of 2021, beating the Zacks Consensus Estimate of $2.04. The company had incurred a loss of 35 cents per share in the year-ago quarter. The reported quarter is the first profitable quarter for the company, owing to the success of its COVID-19 vaccine, mRNA-1273.
Revenues in the quarter were $1.94 billion, slightly missing the Zacks Consensus Estimate of $1.97 billion. In the year-ago quarter, revenues were $8 million. The significant increase in revenues was driven by sales of its coronavirus vaccine, which is now approved for temporary/emergency use in several countries. Moreover, grants from an agreement with Biomedical Advanced Research and Development Authority (“BARDA”) related to development of the COVID-19 vaccine also drove revenues.
Despite strong first-quarter results, Moderna’s shares were down 1.4% on May 6 presumably due to reports of waiving off intellectual property rights for COVID-19 vaccines and lower-than-expected revenues. Per a Reuters article, the U.S. government has stated that it would support such a waiver to help speed up the end of the pandemic. Investors’ sentiment was likely dampened as a potential patent waiver may hurt future product sales for Moderna. However, shares of the company have surged 53.5% so far this year against the industry’s 6.8% decrease.
Quarter in Details
In December, Moderna received approval for emergency use of its coronavirus vaccine, mRNA-1273. With this approval, the company got its first commercial product and recorded product revenues for the first time. The company received emergency use approval for mRNA-1273 in several other countries including European Union so far in 2021.
Product sales, entirely from COVID-19 vaccine, were $1.73 billion during the quarter.
Grant revenues were $194 million compared with $4 million in the year-ago quarter. Please note that the company has received a funding commitment of up to $955 million from BARDA to develop its coronavirus vaccine candidate in 2021.
Collaboration revenues were $10 million, compared with $4 million in the year-ago quarter. The company earns collaboration revenues from agreements with several big pharma/biotech companies including AstraZeneca (AZN - Free Report) , Merck (MRK - Free Report) and Vertex Pharmaceuticals (VRTX - Free Report) .
Selling, general and administrative expenses were $77 million compared with $24 million in the year-ago quarter. The significant increase was primarily attributable to increased headcount and commercialization-related activities for mRNA-1273 vaccine.
Research & development expenses were $401 million compared with $115 million in the year-ago period. The rise was largely due to increased higher clinical development costs for mRNA-1273.
The company ended the quarter with $8.2 billion in cash and cash equivalents, compared with $5.25 billion as of Dec 31, 2020.
Coronavirus Vaccine Update
Moderna reported that it has delivered 102 million doses of mRNA-1273 during the first quarter across the globe.
Meanwhile, the company raised the lower end of its global manufacturing target for 2021 from 700 million doses to 800 million doses. The company expects to supply 800 million to one billion doses in 2021. The company anticipates to deliver 200 million to 250 million doses during the second quarter.
Moderna anticipates demand for high-efficacy mRNA vaccines and variant boosters to increase in 2022. The company is currently investing to support supply of up to 3 billion doses of its COVID-19 vaccine in 2022. It previously expected to supply 1.4 billion doses next year. The company is engaged in discussion with governments of different countries, who have already signed advance purchase agreements for 2021, for signing deals for 2022. It is also focusing on adding agreements with new countries for 2022 as well as 2023.
Meanwhile, Moderna shared updated data from the phase III COVE study that had supported emergency use authorization for mRNA-1273 last year. The updated data demonstrated that the vaccine’s efficacy — 90% across all cases and 95% against severe cases — was maintained after median follow-up of approximately six months post the second dose. Moreover, antibodies elicited by the vaccine persisted for six months, indicating that the vaccine will provide protection for at least six months against SARS-CoV-2. Meanwhile, the company is planning to submit a biologics license application, seeking full approval for mRNA-1273, with the FDA later this month.
The company has also started developing mRNA-1273 in younger patient population. A phase II/III study is evaluating it in adolescents. Initial data from the study demonstrated vaccine efficacy of 96% in seronegative participants, who have received at least one injection.
A phase II study is evaluating mRNA-1273 in pediatric population, who are aged 6 months to 11 years. A late-stage study is evaluating the vaccine in adults with a kidney or liver transplant. A phase I study is evaluating the company’s next-generation COVID-19 vaccine candidate, mRNA-1283.
A phase II study is evaluating a booster dose of mRNA-1273 or variant-specific vaccine candidate, mRNA-1273.351, in previously vaccinated individuals. Initial data from the study showed that the booster dose of either vaccine candidates increased neutralizing antibody titer responses against SARS-CoV-2 as well as two variants of concern, B.1.351 and P.1.
Raised 2021 Guidance
Moderna raised its guidance for product sales in 2021 that it had provided on the fourth-quarter earnings call. The company anticipates product sales to be $19.2 billion in 2021, compared with the previous guidance of $18.4 billion.
The company expects its operating expense to increase sequentially every quarter in 2021 to support commercial and research and development activities related to COVID-19 vaccines.
Moderna, Inc. Price, Consensus and EPS Surprise
Moderna, Inc. price-consensus-eps-surprise-chart | Moderna, Inc. Quote
Zacks Rank
Currently, Moderna carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>