Moderna announced a surprising profit for the third quarter, surpassing expectations. Cost-cutting measures and strong sales of its COVID-19 vaccine boosted performance.
The company reported net income of $13 million, a sharp improvement from last year’s loss of $3.63 billion, CNBC reported.
Moderna’s third-quarter revenue reached $1.86 billion, fueled by $1.2 billion in U.S. COVID-19 vaccine sales and increased demand from early U.S. approval.
Cost reductions were a significant factor in this turnaround, as Moderna plans to achieve $1.1 billion in savings by 2027. This quarter marked the launch of Moderna’s RSV vaccine, its second commercial product, though initial sales were below expectations due to seasonal timing.
Moderna also sees growth with its experimental next-gen COVID vaccine and a combination flu and COVID shot. The company is developing 45 products and plans to launch ten within the next three years. Investors, however, remain cautious, as Moderna stock is down 50% this year amid questions about its future post-COVID.
This shift reflects the biotech’s strategic shift from COVID dependence to a broader product pipeline, including potential flu vaccines, latent viruses, and personalized cancer treatments in collaboration with Merck.
Moderna aims to leverage its mRNA technology across a variety of therapeutic areas and, despite challenges, remains optimistic about long-term growth with continued R&D investments.
This article was written with the assistance of artificial intelligence.