Moderna Gains on Sharp Cost Cuts as Covid Vaccine Declines

Core Insights - Moderna Inc. shares increased after reporting a narrower third-quarter loss than anticipated, indicating effective cost-cutting measures amid declining Covid vaccine sales [1][2] - The company aims to break even by 2028, despite a significant 45% year-over-year decline in third-quarter sales, which totaled $1 billion, primarily from its Covid vaccine [2][3] Financial Performance - The net loss for the third quarter was 51 cents per share, significantly better than Wall Street's expectation of a loss of $2.21 [1] - Third-quarter sales of $1 billion exceeded analysts' expectations, despite a 45% decline from the previous year [2] - Moderna's projected sales for the year are now between $1.6 billion and $2 billion, a reduction from the previous forecast that reached up to $2.2 billion [4] Market Context - Moderna shares rose 4.4% in premarket trading, although they have declined 43% year-to-date, contrasting with a nearly 16% gain in the S&P 500 index [3] - The company has faced challenges due to reduced demand for Covid vaccines and confusion surrounding federal vaccination policies [3][6] Regulatory Environment - The third quarter marked the beginning of the US vaccination season, revealing the impact of new guidelines that limit access to Covid vaccines [6] - The Advisory Committee on Immunization Practices recommended ending universal access to Covid shots, requiring individuals to consult medical professionals before vaccination [7]