Shares of Moderna rallied on Wednesday after the biotech company reported higher-than-expected revenue and profits in the first quarter, with results boosted by soaring coronavirus vaccine sales, which have more than tripled from a year ago.
Shares moved lower despite strong earnings results from the vaccine maker.
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Moderna’s stock rose 5.8% to over $155 per share on Wednesday after the vaccine maker reported first-quarter earnings that beat Wall Street expectations, as revenue and profits surged from a year ago.
Shares initially jumped by as much as 5% in premarket trading following the strong earnings results.
Moderna’s quarterly revenue came in at more than $6 billion—compared to the $4.6 billion expected by Wall Street analysts, while net income of nearly $3.7 billion more than tripled from the first quarter of 2021.
The company reported $5.9 billion in coronavirus vaccine sales during the first quarter, a more than threefold increase from the $1.7 billion in sales a year ago.
Moderna predicts $21 billion in total vaccine sales for 2022, with a boost in the second half of the year thanks to increased vaccination campaigns in the fall season, management said.
The company expects to receive regulatory approval for a redesigned vaccine that targets the omicron variant by this summer and its coronavirus vaccines for children will be reviewed by the Food and Drug Administration in June.
“The virus is mutating to become more and more infectious, and there’s waning immunity,” CEO Stephane Bancel told CNBC on Wednesday. “It is going to be really important to boost people in the fall with a better-adapted vaccine, which is what we’re working toward.”
Moderna shares are down roughly 38% so far this year, amid a wider market selloff that has been driven by large declines in technology and healthcare stocks.
What To Watch For
Moderna’s cash pile grew to $19.3 billion by the end of the first quarter, a notable increase from $17.6 billion in December 2021. Bancel hinted at possible M&A activity during Moderna’s earnings call, saying that the company “will not be shy to invest” in new opportunities. “I can tell you our teams have never been as busy,” he said, adding, “They are looking at a lot of opportunities literally across the world.”
$4.8 million. That’s how much Moderna CEO Stephane Bancel is worth, according to Forbes’ calculations. He has held the top job at the biotech company since 2011 and holds a roughly 8% stake.
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