Moderna (MRNA) Q2 2022

Illustration of a Moderna vaccine vial for the treatment of coronavirus.

Marcos Del Mazo | Light rocket | Getty Images

Modern on Wednesday reported second-quarter results that beat earnings and revenue expectations, leading to $4.5 billion in sales of its Covid-19 vaccine, but it’s still the company’s only commercially available product and it’s been hit hard by vaccines with an expiring date.

The Boston biotech company’s costs have risen to $1.4 billion, or 30% of the revenue generated from its vaccine. Moderna has received nearly $500 million in write-offs of vaccines that have expired or are expected to expire before they can be used.

Moderna also lost $184 million in vaccine purchase obligations and incurred $131 million in unused manufacturing capacity costs. These costs are related to a significant reduction in the expected supply of the vaccine to Covax, an international alliance that purchases vaccines for poorer countries. Deliveries have also been delayed for major customers such as the European Union.

The Boston biotech company posted $4.7 billion in sales for the quarter, up 9% year-over-year. Moderna has maintained its 2022 Covid vaccine sales forecast of $21 billion.

Moderna posted adjusted earnings of $5.24 per share, down 18% from Q2 2021. The company’s net income was $2.2 billion, down 20% from the same period in 2021.

Moderna has an $18 billion cash pile and has said it is going to buy back $3 billion of its shares with some of that cash.

Here’s how the company performed compared to what Wall Street expected, based on average analyst estimates compiled by Refinitiv:

  • Adjusted earnings per share: $5.24 per share compared to $4.55 expected
  • Income: $4.7 billion compared to $4.1 billion expected

Last week, Moderna announced a $1.74 billion deal with the US to supply 66 million doses of its updated Covid vaccine targeting the omicron BA.4 and BA.5 sub-options. The agreement includes an option to purchase an additional 234 million doses.

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