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Moderna expects to break even in 2026, says CEO Stéphane Bancel

Moderna Inc., expects to break even in 2026 as it aims to drive profits by “disciplined investment” and organic sales growth.

HQ Team

January 5, 2023: Moderna Inc., expects to break even in 2026 as it aims to drive profits by “disciplined investment” and organic sales growth.

Stéphane Bancel, Chief Executive Officer of the Cambridge, Massachusetts-based company said he would build on the momentum to grow the market share of Spikevax in 2024.

The sale of its Covid-19 vaccine Spikevax is expected to stabilise this year, he said.

“To support this, we decided at the end of 2023 to flatten our commercial organization to help us accelerate decisions and increase customer understanding as we prepare for multiple product launches,” he said in a letter to shareholders.

Sales growth in 2025

“With the expected launch of our RSV vaccine candidate in 2024, and the potential launch of our flu/Covid combination vaccine as early as 2025, we believe Moderna will experience sales growth in 2025.”

Moderna, Inc.’s third-quarter November net loss was $3.63 billion, compared to a net income of $1.04 billion during the same period a year ago. 

Total revenue for the third quarter declined to $1.83 billion from $3.36 billion, mainly due to a decrease in sales of the Spikevax.

During fiscal 2024, Moderna forecast sales growth of about $4 billion, mostly in the second half of the year, due to Covid-19 vaccine global sales and the introduction of its RSV vaccine.

The company expects its Covid-19 franchise to be profitable in its anticipated sales scenarios for 2024 and beyond.

Resize manufacturing 

“During 2023, it became clear that demand for vaccines had entered a new stage of the endemic setting and we pivoted to significantly resize our manufacturing infrastructure to help ensure our COVID-19 franchise would be profitable in 2024 and beyond. 

“Although under-vaccination has been observed in the first endemic season, we believe this will settle out over the coming years as the impact of the virus and vaccine during endemic periods becomes evident and may affect future levels of vaccination.”

The CEO said “disciplined investment” would be the second priority for the company.

“We will continue to review our manufacturing costs, and product pipeline, and deliver efficiencies. Our upcoming respiratory product launches in 2024 and 2025 will also achieve efficiencies from a growing pipeline.”

mRNA platform

Moderna’s late-stage pipeline is expected to drive organic sales growth, he said.

“We have an exciting late-stage pipeline, and we expect to double the number of programs in Phase 3 by 2025 and launch up to 15 products in five years. Up to four of those launches could come by 2025.”

“We expect to break even in 2026, as revenue grows and late-stage R&D costs recede when the current large Phase 3 clinical trials wind down and result in many potential new product launches.”

Moderna uses a messenger RNA platform to develop vaccines and medicines for cancer and rare and infectious diseases. RNA therapeutics use a copy of a molecule (mRNA) to carry instructions for proteins to produce an immune response.

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