Moderna Beats Estimates on Covid Vaccine Sales Outside US

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(Bloomberg) — Moderna Inc.’s first-quarter sales beat expectations, as the struggling vaccine maker that’s faced resistance from the Trump administration has found new growth outside the US.

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First-quarter sales more than tripled from a year ago to $389 million, well above the highest analyst estimate for $333 million. The sharp increase was fueled by deals that Moderna has made with governments outside the US, including its first shipment to the UK under a new long-term agreement.

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Moderna rose 7.2% at 7:58 a.m. in New York Friday morning before the start of regular trading. The shares had gained 56% on the year through Thursday’s close. 

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The Cambridge, Massachusetts-based company also reported a loss per share of $3.40, narrower than analysts expected. The company’s costs increased due to a roughly $900 million payment it agreed to make in March to settle litigation related to the delivery technology for its Covid shot.

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Moderna reiterated its previous guidance for up to 10% revenue growth this year. Moderna still plans to break even by 2028, Chief Financial Officer Jamey Mock said in an interview.

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Wall Street shouldn’t have been surprised by the rise in sales. Moderna said in February that it expected to see $200 million in revenue from shipping its Covid vaccines to UK in the first half of this year.

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The results are part of the company’s strategy to “diversify our geographic footprint” and rely less on the US market, Chief Executive Officer Stephane Bancel said in an interview on Bloomberg TV. That’s included vaccine supply deals with governments in Canada, Australia, Brazil and Mexico, he said. “We’re starting to see the fruit of those investments,” he said.

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The first quarter is typically a quiet one for Moderna, whose US Covid vaccine sales are usually concentrated in the second half of the year, before the cold weather virus season.

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But this quarter was anything but quiet with US regulators. In February, the US Food and Drug Administration initially refused to review Moderna’s flu vaccine, which it had submitted for approval, leading to a public spat between the company and its regulator. The agency then changed course and agreed to review the shot a few days later. The FDA is slated to make a decision on whether to approve the shot by Aug. 5, in time for the next flu season. 

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Bancel said that Moderna is having “very good discussions” with the FDA about its flu shot and is awaiting more late-stage trial data.

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Moderna has been trying to cut costs after sales of its Covid shot plunged post-pandemic and its RSV vaccine has failed to gain traction. 

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Under the leadership of Health Secretary Robert F. Kennedy Jr., a vaccine skeptic, US officials have narrowed the population of people who are eligible for Covid vaccines, created confusion over how to get them and raised questions over their safety.