Biotechnology company Moderna reports deep losses due to declining demand for COVID vaccine last year. Despite this, the executive board is banking on future growth.
The American pharmaceutical company Moderna, which specializes in biotechnology, recently published its financial statement for the past year. Unfortunately, the figures for the company were deeply in the red due to the declining demand for their COVID vaccine.
In 2024, the Executive Board expects another decline in sales, yet they reinforce their long-term goals. "The year 2023 was a transition year," commented CEO Stephane Bancel in a statement on Thursday. Despite the difficult situation, the company is adapted and ready to invest in the future.
The Moderna stock temporarily rose by 9.10 percent to 95.56 US dollars in US trading on the NASDAQ.
To adjust their production capacities for their COVID vaccine, Moderna had to downsize and also scale back marketing last year. As a result, the company had to accept billion-dollar write-downs and record a loss of 4.7 billion dollars (just under 4.4 billion euros).
In comparison, the previous year had generated a profit of just under $8.4 billion. In contrast, competitor Pfizer still made a profit of $2.1 billion in 2023 despite the slump in demand for their own COVID vaccine. Moderna's revenue fell by more than two-thirds to $6.8 billion within the twelve reporting months.
In the fourth quarter, the company still earned less than the previous year, but was able to record a profit. Analysts had expected a loss, but revenues from Moderna's COVID vaccine Spikevax exceeded market expectations. CEO Bancel reaffirmed his forecast of achieving sales of 4 billion dollars this year. However, this would still represent a decline of over 40 percent.
Despite These Challenges, Moderna Has High Hopes for Its Respiratory Virus RSV Vaccine, with Market Approval Expected in the First Half of the Year. In Addition, the Company Has Made Significant Advances in the Research of Infectious Diseases, Cancer, and Rare Diseases.
In the current year, the results from several important studies are due, which are of great importance for approval. Moderna is therefore focusing on the potential marketing of these drugs. At the same time, CEO Bancel announced that he will continue to invest cost-effectively in his research pipeline.
