Positive Earnings Results Send Moderna Higher

Moderna

The premarket price of Moderna’s (NASDAQ:MRNA) stock increased 4% on August 3 as a result of Q2 revenue growth driven by its blockbuster COVID-19 vaccine.

The company’s Q2 earnings exceeded expectations, with total sales rising +9% Y/Y to $4.75B.

According to the company’s results release, product sales (COVID-19 vaccine sales) in Q2 increased by +8% year over year to $4.53B (Bloomberg’s forecast was $3.82B). This growth was primarily caused by a higher average selling price owing to client mix.

Following the news, Moderna (NASDAQ:MRNA) increased 4.33 percent to $167.77.

What the CEO Says

Stéphane Bancel, CEO of Moderna, explained that with $10.8 billion in revenue for the first half of the year, the new earnings totals signify a terrific second quarter performance. 

Bancel also pointed out that his company still has advance purchase agreements for over $21 billion in sales that are anticipated to be delivered in 2022.

Due to the timing of the approval of its improved COVID-19 vaccines and the associated production ramp-up of new products, Moderna anticipates that sales in H2 will be higher in Q4 than in Q3.

The business stated that the Advance Purchase Agreements (APAs) totaling $21B in 2022 include an adjustment for doses that COVAX has not yet allocated due to a lack of demand, as well as the newly announced agreement with the U.S. for 70M doses (the option for 4M pediatric doses has been exercised).

To almost $2.2B in Q2, net income decreased -20.97% year over year.

In Light of the Positive Results, New Buyback Plan Approved

Moderna’s board approved a fresh $3 billion share buyback plan. Bancel said the company now has a strong balance sheet with $18 billion in cash and an agile, mission-driven team of over 3,400 people.

All of this puts Moderna (NASDAQ:MRNA) in a great position to drive scale and speed in research of new medicines despite the slowing economy and challenges in the biotech sector, Bancel said. 

The company currently has four infectious disease vaccines in Phase 3 trials. Critical findings from proof-of-concept studies in rare illnesses and immuno-oncology are expected later this year.

Featured Image: Megapixl @Stigalenas

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