The Moderna Covid-19 vaccine is prepared for administration ahead of a free distribution of over the counter rapid Covid-19 test kits to people receiving their vaccines or boosters at Union Station in Los Angeles, California on January 7, 2022.
Frederic J. Brown | AFP | Getty Images
Moderna on Thursday said it expects to sell at least $19 billion of its Covid-19 vaccine this year, after reporting fourth-quarter earnings that blew out analysts’ earnings and revenue estimates.
Moderna stock rose 11.4% in morning trading. The company’s 2022 forecast for vaccine sales was $2 billion higher than its previous expectation. Moderna previously said it expected $17 billion in vaccine sales this year.
Moderna CEO Stephane Bancel told analysts on an earnings call Thursday morning that the $19 billion only reflects signed purchase agreements and doesn’t count its potential U.S. sales yet since the federal government hasn’t signed advanced purchase agreements for 2022.
Bancel declined to comment on future U.S. pricing of the vaccine, though he does expect the price to increase as the shots move into a normal, private market. “We think the price does not reflect the value of the vaccine from a pharmacoeconomic standpoint,” Bancel said.
Here’s how the company performed compared with what Wall Street expected, based on analysts’ average estimates compiled by Refinitiv:
- Adjusted EPS: $11.29 vs $9.90 expected
- Revenue: $7.2 billion vs. $6.78 billion expected
Moderna reported $4.9 billion in net income for the fourth quarter. The company sold $17.7 billion of its Covid vaccine in 2021, delivering 807 million vaccine doses worldwide. Moderna’s revenue totaled $18.5 billion for 2021.
Bancel told CNBC on Thursday that the world may be moving out of the pandemic phase as the omicron wave subsides in the U.S. and around the world. However, Bancel said people will need booster shots in the fall, particularly individuals over 50 and those with underlying conditions.
“We believe there’s a high probability that we’re moving into an endemic setting,” Bancel told CNBC’s Meg Tirrell. “We should still be cautious because as we’ve seen with delta, which came after alpha and was more virulent, [it] is always possible to get the more virulent variant of course.”
Moderna’s Covid vaccine is the company’s only commercially available treatment. The two-dose vaccine, Spikevax, was fully approved for adults ages 18 and older in the last month by the Food and Drug Administration and the Centers for Disease Control and Prevention.
Moderna is conducting a clinical trial for a booster shot that specifically targets the omicron Covid variant. However, it’s unclear whether there will be strong demand from the public for an omicron booster as new infections from the variant drop sharply in the U.S. and other parts of the world. The company said Thursday that it’s also developing a booster that targets both omicron and the other circulating Covid variants.
“We believe that a seasonal booster will be…
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