Moderna stock jumped 7% during premarket trading on Thursday after the pharma company, known for its mRNA COVID-19 vaccine, reported a profit of $217 million in its fourth quarter ending Dec. 31.
The company’s profit comes as a surprise to Wall Street, as it has reported a loss in the past two quarters and use of its only product available on the market has dwindled in the last year.
Only 22% U.S. adults have received an updated COVID-19 vaccine, according to the Centers for Disease Control and Prevention.
Moderna says it managed to turn a profit last quarter by scaling back its production of COVID-19 vaccines, while at the same time increasing its market share.
During the fall 2023 COVID season, Moderna reached 48% market share in the U.S., compared with 37% in 2022.
The company’s momentum was also boosted by $600 million in deferred revenue in connection with Gavi, the Vaccine Alliance, a worldwide health coalition dedicated to enhancing vaccine availability.
“2023 was a year of transition for Moderna as we adapted to the endemic market,” Moderna CEO Stéphane Bancel said in a statement.
Moderna’s fourth quarter by the numbers
Moderna’s net income fell 85% in in the three months ended Dec. 31, to $217 million from $1.5 billion in the same period the prior year. That still beat Wall Street expectations of a $382 million loss, according to FactSet.
The company’s revenue was down 45% year-over-year to $2.8 billion in its fourth quarter, from $5 billion. Its earnings per share came to $0.55, outperforming Wall Street expectations of $0.99 loss, according to a consensus estimate from analysts surveyed by FactSet.
Moderna in 2024 and beyond
The pharmaceutical company expects to generate $4 billion in revenue in 2024 from its respiratory franchise, which includes its COVID-19 vaccine and an upcoming RSV vaccine.
Moderna said it expects to receive FDA approval for its RSV vaccine in the first half of 2024. The company is also developing a combined COVID and flu vaccine. Moderna has a total of 45 products in development.