Moderna Inc (MRNA.O) reaffirmed annual sales forecast of $5 billion for its COVID-19 vaccines on Thursday despite its fourth-quarter sales exceeding estimates, on expectations of lower demand for the shots in the fourth year of the pandemic.
Sales of the vaccine, Moderna’s sole commercial product, were expected to fall sharply this year from $18.4 billion in 2022 as most people globally have received their shots and boosters, while governments and other agencies cut purchases.
The sales forecast implies a “possible EPS net loss” this year compared to the huge profit its COVID vaccines drove during its peak, Jefferies analyst Michael Yee said in a note.
However, there is a potential for positive cash flow this year if Moderna is able to get more advanced purchase agreements for its COVID shots, Yee said.
Moderna expects additional sales from markets including the United States, Europe and Japan.
The underwhelming sales forecast dragged shares of the company down 4.2% to $151.5 in premarket trading.