Moderna obliterated Covid vaccine sales forecasts on Wednesday and reported better-than-expected quarterly profit, leading Moderna stock to surge.
The company retained its full-year outlook for $21 billion in sales, based on current agreements. But that could change with the authorization of an omicron-blasting Covid booster shot. The market is eagerly awaiting that shot, says Lee Brown, lead health care analyst at research firm Third Bridge.
"In speaking with industry experts, the U.S. booster market potentially could represent over $7 billion annually for the next several years even if ongoing booster shots only focus on the 50 years of age and older cohort and other higher-risk groups," he said in a note to clients. "As such, the Covid-19 vaccine tail wind is expected to continue."
Moderna stock soared 16% to close at 186.49 on today's stock market.
Moderna Stock: Sales Unexpected Rise
Overall, Moderna earned $5.24 per share on $4.75 billion in second-quarter sales. As expected, the company's profit fell 19%. But analysts called for a deeper decline to $4.58 per share.
Sales unexpectedly grew, however. Analysts called for a 6% dive. But sales increased more than 9% to $4.75 billion. That included $4.53 billion from the Covid shot, Spikevax. The remainder came from grants and collaborations.
Moderna also reiterated its view for $21 billion in full-year sales of its Covid vaccine. Analysts called for $22.2 billion in total revenue. Further, the company announced a new Moderna stock repurchase program from $3 billion.
"Despite the slowing economy and challenges in the biotech industry, Moderna is in a unique position: a platform to drive scale and speed in research of new medicines, a strong balance sheet with $18 billion of cash and an agile, mission-driven team of over 3,400 people are growing," Chief Executive Stephane Bancel said in a written statement.
What's Next For Moderna?
Experts are increasingly interested in what's next for Moderna, one of the pioneers behind the new messenger RNA platform. Third Bridge's Lee says the omicron-blocking booster will be key "given the waning (effectiveness) of the original vaccines against the current prevalent strains of the virus."
But Moderna stock watchers are also eyeing four drugs in Phase 3 testing. Third Bridge analyst Brown noted Moderna's efforts in influenza, respiratory syncytial virus and the cytomegalovirus.
"There appeared to be less enthusiasm for the CMV vaccine, given it is a smaller market opportunity, although admittedly, there is not an approved vaccine, which could enable Moderna to be first to market," he said.
In morning trades, Moderna stock made a strong move toward its 200-day line, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
