Updated Version 4 - Moderna Raises Annual Revenue Forecast Due to Strong Overseas Demand for COVID-19 Vaccines

Update stock price information and add analyst comments in paragraphs 8 and 9

Kamal Choudhury/Mariam Sunny

Reuters, November 6 - Moderna MRNA.O raised its full-year revenue outlook on Friday after strong international demand for its COVID vaccine and payments from partnerships helped the biotech company turn a profit in the third quarter, pushing its stock price up more than 10%.

This surge further cemented Moderna’s record performance this year—its share price has already soared over eightfold, mainly thanks to encouraging late-stage clinical trial data for its personalized cancer vaccine candidate developed with Merck MRK.N (link).

Evercore ISI analyst Cory Kasimov said these optimistic results are “the icing on the cake” for the company’s recent breakthroughs in cancer vaccines.

Detailed results from a late-stage clinical trial released last month (link) showed the cancer vaccine ‘intismeran autogene’ combined with Keytruda reduced the risk of melanoma recurrence or death by 42%.

Moderna said it is actively progressing to ensure it submits the U.S. marketing application for intismeran this year.

The two companies plan to launch the product officially in 2027.

“We believe we’re at the beginning of a scientific revolution, and we’re very excited to be leading,” Moderna president Stephen Hoge said during a call with analysts.

Analysts noted that investors are looking for clearer updates on intismeran’s next steps. The share price had previously been under pressure due to a lack of recent news before rebounding.

William Blair analyst Myles Minter said that compared with short-term earnings surprises, investors are still more focused on Moderna’s oncology pipeline and soon-to-be-released data.

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Moderna expects total revenue to grow 15% to 25% by 2026, up from a previously forecast maximum growth rate of 10%.

The company said it will not test further cohorts of its experimental norovirus vaccine this quarter. After failing to reach early success statistical thresholds in an interim analysis, the company had originally planned to expand the trial, but has now reversed course.

Bernstein analysts stated: “Moderna appears to be raising its R&D standards and controlling costs by no longer pursuing a new round of norovirus trials.”

According to data compiled by LSEG, the company’s third-quarter revenue reached $1.3 billion, beating analysts’ estimates of $885.1 million.

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Moderna posted net profit of $162 million, compared with a net loss of about $200 million a year earlier.

(To facilitate non-native English speakers, Reuters has automatically translated this report into several other languages. Since automated translations may contain errors or lack necessary context, Reuters does not guarantee the accuracy of translated text and provides it solely for readers’ convenience. Reuters assumes no responsibility for any damage or loss arising from the use of automatic translation.)