In a surprising turn of events, Moderna, the American drug company known for its COVID-19 vaccine, has reported a first-quarter loss of $1.2 billion. This comes as demand for their vaccine has plummeted, with sales totaling only $167 million in the first quarter of 2024, compared to $2.8 billion during the same period last year.
Moderna attributes this decline to the expected shift towards a seasonal COVID-19 vaccine market. In the previous year, the company recognized revenue from doses that were deferred from 2022. Despite the setback, Moderna remains focused on collaborating with public health officials, healthcare providers, and pharmacies to increase vaccination rates and mitigate the burden of COVID-19.
To reassure investors, Moderna has announced the development of a “next-generation” COVID vaccine that promises to combat different strains of the virus. Phase 3 clinical trials for mRNA-1283, the new vaccine, showed a higher immune response against both new and original virus strains compared to the original formula. The company is also conducting trials for a combination one-shot vaccine against the flu and COVID-19, with data expected to be available in 2024. Additionally, Moderna anticipates receiving approval for its respiratory syncytial virus (RSV) vaccine, which it plans to include in the fall's vaccine campaign in the United States.
Moderna's struggles are not unique, as Pfizer, the German pharmaceutical giant, also experienced a decline in profits by 40% in the first quarter of 2024. Similar to Moderna, Pfizer blames the decline on diminishing demand for COVID vaccines due to disappointing results.
Overall, Moderna's financial loss highlights the challenges faced by pharmaceutical companies as COVID-19 vaccine demand decreases. However, the company remains optimistic about its future prospects with the development of new vaccines and potential approval for its RSV vaccine.
