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Thursday, November 3, 2022

Moderna cuts COVID vaccine sales forecast on supply woes, shares tumble

 Moderna Inc cut its annual sales forecast for COVID-19 vaccine on Thursday, citing short-term supply constraints that would push some deliveries to next year, sending its shares down nearly 11% before the bell.

It now expects vaccine sales of $18 billion to $19 billion this year compared to a prior forecast of $21 billion due to delays at its contract manufacturing partner.

Demand for original coronavirus vaccines too has taken a hit in international markets as countries complete primary vaccine campaigns, while the roll out of updated Omicron-tailored boosters has been slow in the United States and Europe.

Some U.S. pharmacies in September had reported that government supply of Moderna's updated shot remains limited, causing appointments for the product to vary across the country.

Moderna's weak forecast comes just two days after rival Pfizer Inc's quarterly sales of its COVID-19 vaccine exceeded market expectations and the drugmaker raised the full-year sales view for its shots.

Jefferies analyst Michael Yee said Wall Street's expectations for the shot were too high and Moderna's forecast was "a stretch".

Its sales of $3.36 billion in the third quarter missed Wall Street estimates of $3.53 billion. The company said the lower sales was due to the timing of market authorization for bivalent booster shots and the related manufacturing ramp-up.

It also reported a $333 million charge on vaccines that had expired or were about to expire before being used and $209 million in expenses for unutilized manufacturing capacity.

Moderna expects $4.5 billion to $5.5 billion in sales from signed contracts for its COVID-19 shots in 2023.

https://finance.yahoo.com/news/moderna-shares-tumble-cutting-sales-110905985.html

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