Pharmaceutical company Moderna (MRNA) has posted a profit for the fourth quarter of 2023 even though sales of its Covid-19 vaccine continue to decline.
Moderna reported earnings per share (EPS) of $0.55 U.S., which was much better than a loss of $0.97 U.S. that was expected on Wall Street.
The company’s revenue in the quarter totaled $2.81 billion U.S., which topped the $2.50 billion U.S. that was expected among analysts who track the company’s progress.
The better-than-expected results come despite sales of Moderna’s Covid-19 vaccine declining 43% from a year ago.
The company said it managed to overcome the decline in sales volumes by raising the price it charges for the Covid-19 vaccine.
Moderna has also undertaken strict cost control measures that have lowered its cost of sales and boosted profitability at the company.
The cost controls have included scaled back manufacturing of its Covid-19 vaccine and write-downs of unused doses of the vaccine.
In terms of guidance, Moderna reiterated its previous full-year 2024 sales outlook of $4 billion U.S. The company said it will continue to reduce expenses this year.
Moderna has said it expects to return to sales growth in 2025 and break even by 2026, with the launch of new products.
The company lost $4.7 billion U.S. for all of 2023 compared to a profit of $8.4 billion U.S. in 2022.
Moderna says it currently has 45 products in development, including a combined Covid-19 and influenza vaccine, which could win regulatory approval in 2025.
The stock of Moderna has declined 45% over the last 12 months to trade at $87.59 U.S. per share.
