Moderna, Inc. (MRNA) Goldman Sachs 44th Annual Global Healthcare Conference (Transcript)

Summary of Moderna, Inc. Conference Call Company Overview - Company: Moderna, Inc. (NASDAQ:MRNA) - Event: Goldman Sachs 44th Annual Global Healthcare Conference - Date: June 14, 2023 - Participants: Jamey Mock (CFO), Lavina Talukdar (Head of IR), Salveen Richter (Goldman Sachs Analyst) Key Points Industry and Market Dynamics - Transition from pandemic to endemic is impacting volume predictability and cost of goods sold (COGS) [3][4] - COGS is expected to decrease from 35%-40% to a long-term range of 20%-25% as the market stabilizes [5] - The U.S. COVID vaccine market is projected to be a 100 million dose market in 2023, with a gross price of approximately $129 per dose [23][24] Financial Guidance and Cash Deployment - Moderna has over $16 billion in cash, with plans to invest approximately $7 billion in 2023, including $4.5 billion in R&D [6][8] - Focus areas for R&D include respiratory diseases, manufacturing sciences, and new mechanisms of action [9][10] - Share buybacks have totaled $4.7 billion, with $2.3 billion remaining [9] COVID-19 Vaccine Sales and Market Strategy - Confidence in achieving a minimum of $5 billion in COVID vaccine sales, with $2 billion already delivered in the first half of 2023 [11][12] - Additional orders expected from long-term partners in the UK, Canada, and Switzerland [12][13] - Low probability of entering the Chinese market for COVID vaccines in 2023, but long-term potential exists for other therapeutic areas [15] Competitive Landscape and Opportunities - Positive outlook for gaining market share in the EU following Pfizer's contract reduction [17] - Ongoing negotiations for commercial orders in the U.S. and potential for additional government contracts [19][20] Future Product Pipeline - Respiratory sales projected to reach $8 billion to $15 billion by 2027, with a total addressable market (TAM) of approximately $30 billion for COVID, flu, and RSV combined [25][26] - Focus on combination vaccines to increase market share and vaccination rates [28] - Anticipated commercial launch of RSV vaccine in 2024, with a strong product profile expected to capture market share [29] Research and Development Focus - 48 drugs currently in the pipeline, with significant investment in respiratory and oncology therapies [10][36] - Ongoing studies in latent viruses and rare diseases, with promising data emerging from clinical trials [44][46] Company Transformation and AI Integration - Moderna aims to build a digital-first company, embedding AI and machine learning into all functions [60][61] - The company is focused on creating a different organizational culture and structure compared to traditional large pharmaceutical companies [60] Additional Insights - The company is committed to fiscal prudence while investing in long-term growth opportunities [50][51] - Smaller business development transactions are seen as strategic, with potential for significant value creation in the near future [54][55] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Moderna's focus on innovation, market adaptation, and financial discipline.