Moderna’s Earnings Call: Balancing Achievements and Challenges

Moderna ((MRNA)) has held its Q3 earnings call. Read on for the main highlights of the call.

During Moderna’s recent earnings call, the sentiment was a mix of optimism and caution. The company celebrated significant achievements in cost reduction, strategic partnerships, and product approvals. However, these positives were overshadowed by challenges such as a notable revenue decline, a net loss for the quarter, and the discontinuation of the CMV vaccine program.

Cost Reduction Achievements

Moderna reported a remarkable 34% reduction in the combined costs of sales, R&D, and SG&A compared to Q3 2024. This achievement translated into a $2.1 billion improvement in costs over the last four quarters, showcasing the company’s commitment to financial efficiency.

Strategic Partnerships Progress

The company made strides in establishing manufacturing facilities and securing multiyear offtake agreements with Canada, the U.K., and Australia. These efforts led to the delivery of the first made-in-Canada mRNA vaccines and the acquisition of regulatory licenses for facilities in the U.K. and Australia.

mNEXSPIKE and Spikevax Approvals

Moderna’s mNEXSPIKE received approval in the U.S. and Canada for the 2025-2026 season, while Spikevax was approved in 40 countries for the same period. These approvals are pivotal for Moderna’s market presence and future revenue streams.

Cash and Investment Position

Ending Q3 with $6.6 billion in cash and investments, Moderna demonstrated effective financial management. The company projects a year-end balance of $6.5 billion to $7 billion, indicating a stable financial footing despite current challenges.

Oncology and Rare Diseases Pipeline

Moderna reported encouraging progress in its oncology pipeline, including Phase Ib data for mRNA-4359. Additionally, the target enrollment for the propionic acidemia registrational study was reached, marking significant advancements in rare diseases.

Decline in Revenue

The company faced a 45% year-over-year decline in total revenue for Q3, amounting to $1 billion. This drop was primarily attributed to decreased demand for COVID vaccines, posing a significant challenge for Moderna.

Net Loss for the Quarter

Moderna reported a net loss of $200 million for the third quarter, a stark contrast to the net income of $13 million in Q3 2024. This loss underscores the financial pressures the company is currently facing.

CMV Vaccine Program Discontinued

The CMV vaccine program was discontinued after failing to meet its primary efficacy endpoints. This decision reflects the company’s focus on reallocating resources to more promising areas of development.

Reduced U.S. Revenue Guidance

Moderna narrowed its U.S. revenue guidance for 2025 to $1 billion to $1.3 billion, down from the previous range of $1 billion to $1.5 billion. This adjustment reflects lower expected COVID vaccination rates, impacting future revenue projections.

Forward-Looking Guidance

Looking ahead, Moderna has adjusted its 2025 revenue guidance to $1.6 billion to $2 billion, taking into account fluctuating COVID vaccination rates. The company remains focused on strategic partnerships and pipeline advancements, with a goal of achieving cash breakeven by 2028. Continued cost reduction efforts are projected to reduce 2025 cash costs by approximately $900 million since the beginning of the year.

In summary, Moderna’s earnings call reflected a cautious optimism. While the company has made significant strides in cost reduction and strategic partnerships, it faces challenges such as declining revenue and a net loss for the quarter. The forward-looking guidance suggests a focus on strategic growth and financial stability, with an eye towards long-term success.