Moderna Stock Falls Despite Vaccine Sales More Than Tripling From Last Year

Topline

Shares of Moderna dropped on Wednesday even after the biotech company reported higher-than-expected revenue and profits in the first quarter, with results boosted by soaring coronavirus vaccine sales which more than tripled from a year ago.

Key Facts

Moderna’s stock fell roughly 1.5% to around $144 per share on Wednesday despite the vaccine-maker reporting first quarter earnings that beat Wall Street expectations, as revenue and profits surged from a year ago.

Shares initially jumped by as much as 5% in pre-market trading following the strong earnings results, before giving up gains later in the morning.

Moderna’s quarterly revenue came in at more than $6 billion—compared to the $4.6 billion expected by Wall Street analysts, while net income of nearly $3.7 billion more than tripled from the first quarter of 2021.

The company reported $5.9 billion in coronavirus vaccine sales during the first quarter, a more than threefold increase from the $1.7 billion in sales a year ago.

Moderna predicts $21 billion in total vaccine sales for 2022, with a boost in the second half of the year thanks to increased vaccination campaigns in the fall season, management said.

The company expects to receive regulatory approval for a redesigned vaccine that targets the omicron variant by this summer and its coronavirus vaccines for children will be reviewed by the Food and Drug Administration in June.

Crucial Quote:

“The virus is mutating to become more and more infectious, and there’s waning immunity,” CEO Stephane Bancel told CNBC on Wednesday. “It is going to be really important to boost people in the fall with a better adapted vaccine which is what we’re working towards.”

Surprising Fact:

Moderna shares are down roughly 38% so far this year, amid a wider market sell-off that has been driven by large declines in technology and healthcare stocks.

What To Watch For:

Moderna’s cash pile grew to $19.3 billion by the end of the first quarter, a notable increase from $17.6 billion in December 2021. Bancel hinted at possible M&A activity during Moderna’s earnings call, saying that the company “will not be shy to invest” in new opportunities. “I can tell you our teams have never been as busy,” he said, adding, “they are looking at a lot of opportunities literally across the world.”

Big Number: $4.8 Billion

That’s how much Moderna CEO Stephane Bancel is worth, according to Forbes’ calculations. He has held the top job at the biotech company since 2011 and holds a roughly 8% stake.

Further Reading:

Moderna Stock Crash: Losses Top $140 Billion As Insiders Sell Millions Of Dollars In Shares (Forbes)

Markets Inch Higher—But Experts Warn Of ‘Continued Volatility’ After ‘Brutal’ Stock Selloff (Forbes)