Moderna entered a patent license agreement with the U.S. government that includes a $400 million catch-up payment and royalties on future sales of COVID-19 vaccines.
Moderna on Thursday missed earnings expectations for the fourth quarter, as costs rose from surplus production capacity and lower demand for its Covid-19 vaccine, the company’s only product on the market.
Moderna reported quarterly earnings of $3.61 per share, a 68% decrease from the same period in 2021 when it booked $11.29 per share. The figure fell short of the $4.68 a share Wall Street expected.
The Boston biotech company generated $5.1 billion in revenue in the fourth quarter of 2022, which was in line with analyst expectations but a 30% drop from the same period in 2021.
Moderna shares fell as much as 4% in Thursday morning trading.
Moderna has signed contracts for $5 billion in Covid vaccine deliveries for 2023. The company expects additional sales this year in the U.S., Europe and Japan, but demand for the shots is falling as the pandemic eases and vaccination shifts to an annual schedule rather than repeated boosting.
The U.S. government also plans to stop buying shots for the public as soon as this summer, shifting procurement and distribution to the private market.
Moderna estimates U.S. market volume in fall 2023 will be 100 million doses, said Arpa Garay, the company’s chief commercial officer.
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