COVID-19 vaccine sales push Moderna past expectations in Q2

Aug 3, 2022, 7:19 AM | Updated: 2:05 pm

Better-than-expected COVID-19 vaccine sales pushed Moderna past Wall Street’s second-quarter forecasts.

The company said that its Spikevax vaccine brought in $4.53 billion during the quarter. Analysts were looking for around $3.6 billion, according to FactSet.

Moderna shares surged Wednesday after the company also announced another $3 billion share buyback plan.

Moderna’s vaccine sales in the second quarter represent a drop from the nearly $6 billion that the vaccine brought in during the year’s first quarter, when a virus surge through the United States pushed more people to seek protection.

But those sales could pick up again later this year.

Moderna has developed an updated version of its vaccine for a fall booster campaign that combines the original shot with protection against the omicron variant.

The company announced last week that it reached a deal with the U.S. government for an initial purchase of 66 million doses of the booster shot for up to $1.74 billion. The government also has an option to purchase more doses.

The COVID-19 vaccine is Moderna’s main source of revenue, outside of grants and money from collaborations. Total revenue climbed 9% in the second quarter to $4.75 billion.

But operating expenses also swelled 78% to $2.3 billion for the vaccine maker, which has several products in late-stage clinical trials, the most expensive phase of research.

Moderna had $499 million in inventory write-downs in the quarter tied to vaccine doses that exceeded or were expected to exceed their shelf lives before being used. The company also said it booked another loss and an expense for unused manufacturing capacity due partly to a “substantial reduction” in expected deliveries to the COVAX vaccine-sharing program.

Overall, net income plunged 21% to $2.2 billion in the second quarter, and earnings totaled $5.24 per share.

Analysts expected earnings of $4.58 per share on about $4.1 billion in revenue, according to FactSet.

Moderna said Wednesday that its board authorized an additional $3 billion share repurchase program to return capital to shareholders. The company has repurchased 16 million shares since last year’s final quarter. It still has about $1 billion left on another $3 billion repurchase program it announced in February.

Shares of Cambridge, Massachusetts-based Moderna Inc. jumped more than 15% in midday trading to $185.83 while broader indexes climbed over 1%.

___

Follow Tom Murphy on Twitter: @thpmurphy

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

(AP Photo/Charlie Neibergall)...

Associated Press

Donald Trump stored, showed off and refused to return classified documents, indictment says

An indictment charging former President Donald Trump with mishandling classified documents has been unsealed.

2 days ago

FILE - A bottle of Jack Daniel's Tennessee Whiskey is displayed next to a Bad Spaniels dog toy in A...

Associated Press

Ruff day in court: Supreme Court sides with Jack Daniel’s in dispute with makers of dog toy

The Supreme Court on Thursday gave whiskey maker Jack Daniel's reason to raise a glass, handing the company a new chance to win a trademark dispute with the makers of the Bad Spaniels dog toy.

3 days ago

(Pixabay Photo)...

Associated Press

6 arrested in alleged scheme to fraudulently collect millions in COVID aid meant for renters

Six people from Washington, Arizona and Texas have been arrested and accused of fraudulently obtaining millions of dollars of COVID-19 aid from an assistance program meant for renters, federal prosecutors said.

3 days ago

FILE - Protesters stand outside of the Senate chamber at the Indiana Statehouse on Feb. 22, 2023, i...

Associated Press

LGBTQ+ Americans are under attack, Human Rights Campaign declares in state of emergency warning

The Human Rights Campaign declared a state of emergency for LGBTQ+ people in the U.S. on Tuesday.

5 days ago

FILE - People wait in line outside the Supreme Court in Washington to listen to oral arguments in a...

Associated Press

Supreme Court opened the door to states’ voting restrictions. Now a new ruling could widen them.

Within hours of a U.S. Supreme Court decision dismantling a key provision of the Voting Rights Act, Texas lawmakers announced plans to implement a strict voter ID law that had been blocked by a federal court. Lawmakers in Alabama said they would press forward with a similar law that had been on hold.

5 days ago

Gavel (Pexels Photo)...

Associated Press

Ex-teacher sentenced to prison for making death threat against Arizona legislator

A former Tucson middle school teacher was sentenced Tuesday to 2 ½ years in prison after pleading guilty to making a death threat against Arizona state Sen. Wendy Rogers.

5 days ago

Sponsored Articles

...

OCD & Anxiety Treatment Center

5 mental health myths you didn’t know were made up

Helping individuals understand mental health diagnoses like obsessive compulsive spectrum disorder or generalized anxiety disorder isn’t always an easy undertaking. After all, our society tends to spread misconceptions about mental health like wildfire. This is why being mindful about how we talk about mental health is so important. We can either perpetuate misinformation about already […]

...

OCD & Anxiety Treatment Center

How to identify the symptoms of 3 common anxiety disorders

Living with an anxiety disorder can be debilitating and cause significant stress for those who suffer from the condition.

...

Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

COVID-19 vaccine sales push Moderna past expectations in Q2