News that Moderna Inc. (MRNA, Financial) had shipped about 800 million doses of its Covid-19 vaccine to more than 60 countries in 2021 -- and more than tripled the amount of cash and cash equivalents it held – caught Wall Street’s eye on Tuesday morning.
The news, coming from CEO Stéphane Bancel, was contained in a letter to shareholders that was disclosed today.
Meanwhile, Moderna’s stock price slipped by 1.2% in premarket trading. It fell 7.5% on Monday and 27.9% in December.
In the letter, Bancel reportedly added that Moderna ended 2021 with over $17 billion in cash and cash equivalents – significant, since it had begun the year at approximately $5.25 billion.
Analysts at Cowen International Ltd. called the stock “well positioned to address emerging variants of concern (including Omicron), and the tail of the vaccine franchise is likely longer and fatter than many assume,” in an email blast to the media. “Management also sounds extremely confident in the imminent flu data.”
Results in fighting Covid have also been promising. In a test on a version of the Omicron infection that had been generated in a laboratory, the Moderna booster reportedly generated a 37-fold increase in virus-blocking antibodies.
The booster market should be robust for the foreseeable future, Cowen added. “We estimate mRNA-1273/Spikevax will generate global sales of $17.6B in 2021" the firm noted. "For 2022, it could produce $22B in revenue from $17B in APAs, $3B under option, and $2B from the projected fall booster market (we estimate $21.5B).”
Moderna has recorded three quarters of profitability. In the third quarter, the company earned $7.70 a share on sales of $4.97 billion, including $4.81 billion in sales of its Covid vaccine.
Investors.com noted the company's "revenue growth was massive and profits are bullish." Analysts polled by FactSet expect Moderna to earn $8.70 per share on $5.98 billion in sales for the fourth quarter, a significant improvement from the prior-year quarter.
Also affecting Moderna’s stock price was Monday’s announcement by the U.S. Food and Drug Administration that the interval between a second dose of Moderna's Covid-19 vaccine and a booster shot remains six months.
"Right now if you got J&J, you get a booster after two months. If you got Pfizer as your primary series, you can get a booster at five months or beyond. If you got Moderna, you can get a booster at six months or beyond. Whatever you decide to get a booster of," acting FDA Commissioner Janet Woodcock said in a call with reporters.
The stock had a strong 2021, with the company ramping up production and distribution of its Covid vaccine. Forbes noted Moderna’s financial performance has also been great, with sales likely to grow over 13 times year over year to more than $17 billion for 2021 and profits likely crossing the $10 billion mark. “We expect Moderna’s sales to grow by about 18% over 2022, driven by continued strong demand for the company’s Covid-19 vaccine," the publication added. "While over 60% of the U.S. population has received two or more doses of a Covid-19 vaccine, the demand for booster doses is likely to remain a recurring affair, driven by diminishing immunity and the emergence of new variants, such as the omicron strain.”
