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Moderna drops after announcing a $3.1 billion charge, partially due to Covid writedowns

Published 11/02/2023, 06:58 AM
Updated 11/02/2023, 07:00 AM
© Reuters Moderna (MRNA) drops after announcing a $3.1 billion charge, partially due to Covid writedowns
MRNA
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Moderna (NASDAQ:MRNA) shares fell about 2% in pre-market Thursday trade after the pharma company said its third-quarter results were impacted by a $3.1 billion charge related to resizing and a tax valuation allowance.

It includes $1.3 billion for inventory write-downs related to excess and obsolete COVID-19 products.

“Moderna has made substantial progress during the quarter in resizing its COVID-19 manufacturing footprint to accelerate gross margin expansion toward its longer-term target of 75-80%,” the company said in a press release.

Revenue for the quarter amounted to $1.8 billion, which exceeded the consensus estimate of $1.4 billion. The third-quarter net loss stood at $3.6 billion, including a charge.

Looking ahead to the full year 2023, Moderna anticipates revenue of at least $6 billion, which is below the consensus estimate of $6.45 billion.

“We are preparing to launch multiple products through 2025, including our RSV vaccine. We expect to return to sales growth in 2025 and, through disciplined investment, to break even in 2026,” said Stephane Bancel, Chief Executive Officer of Moderna.

Moderna shares dropped 3.5% in early Thursday trade.

The Company reported $1.8 billion in COVID-19 vaccine sales in Q3, which includes $0.9 billion of U.S. sales and $0.8 billion of international sales.

Latest comments

They made a killing off on an ineffective vaccine.
Break even? They made 30 billion off covid
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