Modern (NASDAQ: MRNA) saw the stock rise Thursday, despite rising losses, after the COVID-19 vaccine maker reported more than double the revenue that Wall Street predicted. Moderna missed the expectation of the EPS with revenues far exceeding the analysis forecasts, as the company began recognizing revenue from sales of its COVID-19 vaccine for the first time in December 2020. The loss was simply the result of heavy investment to increase the production of its COVID-19 vaccine.
The company has been spending and shipping the long-awaited coronavirus vaccine for the past two months, but its fourth quarter is merely the surface of its vaccine success. In 2021, Moderna plans to produce 600-700 million doses of its COVID-19 vaccine, but in 2022 it will be able to expand its capacity to 1.4 billion doses due to heavy capital investments, all of which should lead to large profits.
Q4 and FY 2020
For the fourth quarter ending December 31, Moderna reported a quarterly loss of $ 0.69 per share, which was below the Zacks consensus estimate of $ 0.25. Moderna did make $ 570.75 billion in sales. That dropped the average estimate of analysts polled by FactSet to $ 279.4 million, surpassing the Zacks consensus estimate by 74.76%. Just a year ago, revenue was $ 14.06 million, but until its mRNA-1273 coronavirus vaccine, the company had never marketed an approved drug.
Losses rose to 69 cents a share from a loss of 37 percent a year ago, while analysts expect a 34 cents loss. Although much of the revenue still came from the Biomedical Advanced Research and Development Authority’s grant to promote its COVID vaccine, Moderna had product sales for the first time, amounting to $ 199.87 million when the company COVID vaccine sales begin to gain traction. in December. Although losses increased in 2020, Moderna’s sales soared to $ 803.4 million.
Possible threat
One of the biggest risks ahead for all vaccine manufacturers is the emergence of new coronavirus variants. To address this, Moderna is investigating two upgrades. The first is actually a third dose of vaccine that will increase the neutralizing antibody levels to better ward off new strains. The second is an upgraded version specifically modified by the tribe, which was moved to the preclinical and phase 1 trials by the end of January. Modern design it around the. If successful, the company must be able to adapt quickly to protect against future tensions, even though it is designed to target South African variation.
Teenagers
In early December, Moderna began a phase 2/3 trial of its COVID vaccine in young adults aged 12 to 17 years. The data will be reported in the spring and should result in emergency permits just in time for the school period in September. But last month, Moderna did not have enough adolescent volunteers.
Teenagers do not run the greatest risk of serious COVID-19 complications, but they do play a role in transmitting the virus, so their vaccination is another important element in fighting the pandemic.
2021
The company expects $ 18.4 billion in full-year 2021 sales of its COVID vaccine. The figure is based on pre-purchase agreements, but additional discussions continue for both 2021 and 2022. The outlook has shattered forecasts, as analysts had expected $ 11 billion. The company also said it plans to make 700 million doses of its vaccine this year, while still working to increase its capacity to 1 billion. By 2022, Moderna expects to be able to produce 1.4 billion doses.
CEO Stephane Bancel called 2020 a historic year for the company Pfizer (NYSE: PFE) and BioNTech (NASDAQ: BNTX) by one week in the US by obtaining emergency use authorization. The vaccine is Moderna’s first commercial product, with 32 million doses administered to millions of people around the world in the United States.
By 2020, Moderna knew that mRNA vaccines could be very effective; it goes to cash flow-generating commercial company that helps save the world from the clutches of an invisible enemy. The last quarter reported ended a milestone year for the biotechnology company. 2020 was a year in which the world became dark, but the pandemic helped Moderna shine because it gave us a shine at the end of the tunnel. Since the beginning of 2021, its shares have risen 38.6%, significantly exceeding the S&P 500’s profit of 4.5%.
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