Moderna stock MRNA surged nearly 9% on Friday after the company reported a return to profitability in the third quarter and raised its full-year revenue outlook.
The biotechnology company reported revenue of $1.31 billion, up 29% from a year earlier and comfortably ahead of Wall Street estimates of $890.3 million, according to FactSet.
Moderna posted a profit of $162 million, reversing a loss of $200 million in the same period last year.
Earnings came in at 38 cents per share, compared with analyst expectations for a loss of $1.10 per share.
Shares surged 8.96% to $263.08 in trading.
The stock had already gained nearly 682% this year heading into Friday’s session, reflecting growing investor interest in its experimental cancer vaccine and broader mRNA pipeline.
Covid vaccine sales drive Moderna’s quarterly revenue
International demand for Moderna’s Covid-19 vaccines played a significant role in the company’s latest results.
The US market contributed $780 million in revenue, while international markets accounted for another $533 million.
Moderna attributed the increase to higher overseas vaccine sales and the execution of strategic partnerships with governments in the UK, Canada, and Australia.
The company also highlighted a five-year agreement with a local manufacturer in Mexico for COVID-19 vaccines, which it expects to support recurring revenue and expand its market presence.
Moderna’s respiratory vaccine portfolio remains central to its business despite efforts to diversify into other areas.
In August, the US Food and Drug Administration approved its mRNA-based influenza vaccine, mFlusiva, for adults aged 50 and older.
The company is targeting a limited US launch during the upcoming flu season, as the approval came after the annual contracting cycle.
The vaccine also received regulatory clearance in Canada on Thursday, alongside a combination mRNA vaccine targeting both influenza and Covid-19.
Moderna raises full-year revenue growth forecast
Following its stronger-than-expected third-quarter performance, Moderna raised its full-year revenue growth forecast to between 15% and 25%, compared with its previous outlook of up to 10%.
The company expects revenue to be distributed roughly evenly between the US and international markets.
The improved outlook comes as Moderna works to stabilize its business following the decline in demand for Covid-19 vaccines after the pandemic.
Chief Executive Stephane Bancel said the company’s financial recovery and manufacturing capabilities would help it expand into new areas of medicine.
“Moderna, unlike what most people thought a year ago, is not a Covid-19 company,” Bancel said. “It’s a broad mRNA platform company that happens to have its first product being a Covid-19 vaccine.”
The company has approximately $8 billion in cash, which Bancel said would primarily support research and development.
“We think now is the time to invest,” he added.
Cancer vaccine remains central to Moderna’s growth strategy
While Covid-19 products continue to generate most of Moderna’s revenue, investors are increasingly focused on its potential cancer treatments.
The company is developing intismeran autogene, a personalized melanoma vaccine, in partnership with Merck.
The treatment is being studied alongside Merck’s Keytruda immunotherapy in patients at high risk of melanoma returning after surgery.
Expanded Phase 3 results showed that the combination reduced the risk of melanoma spreading or returning.
However, a data leak recently triggered an 18% single-session decline in Moderna shares.
Despite the setback, Moderna said it was working towards regulatory submissions and preparing for a potential commercial launch with Merck.
The partners are also exploring the treatment across other tumour types, as Moderna looks to expand its oncology pipeline.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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