Rewrites paragraph 1 to mention expense outlook, adds CFO quote in paragraphs 3,4
Moderna reduces annual operating expenses by $700 million
US guidelines limit COVID-19 shot access, affecting vaccination rates
Moderna's Q3 revenue beats expectations, but COVID vaccine sales decline
By Patrick Wingrove and Christy Santhosh
Nov 6 (Reuters) - Moderna MRNA.O posted a smaller-than-expected quarterly loss and reduced its annual operating expenses outlook by $700 million on Thursday, helped by lower production costs and a cutback in research and development.
In the third quarter, the COVID vaccine maker saw smaller losses from unused inventory, a reduction in unutilized manufacturing capacity and improved efficiency in the execution of clinical trials.
Moderna expects further reductions in R&D costs over the coming year as it winds down some investment priorities, Chief Financial Officer Jamey Mock said on a conference call.
The company decided not to continue some clinical programs beyond early-stage trials, Mock added.
NEW GUIDELINES REDUCE SUPPORT FOR COVID-19 SHOTS
Moderna announced its results as Americans faced confusion and roadblocks at pharmacies, driven by new U.S. guidelines that scaled back broad support for COVID-19 shots, contributing to the lowest vaccination rates since they were introduced.
In August, the U.S. Food and Drug Administration limited updated COVID shots to seniors and high-risk groups. In September, a revamped group of vaccine advisers to the Centers for Disease Control and Prevention recommended that the shots be given only after shared decision-making with a doctor, adding a roadblock to easy access.
Pfizer PFE.N and Gilead Sciences GILD.O have warned that demand for COVID shots and treatments could slump. Pfizer this week attributed falling Comirnaty vaccine sales to lower infection rates and reduced U.S. vaccination guidance.
Moderna lowered the top end of its 2025 revenue forecast to a range of $1.6 billion to $2 billion from $1.5 billion to $2.2 billion, citing weak COVID vaccine sales.
Mock said in an interview that the timing of the CDC recommendation, which came later than expected, played a role in declining U.S. sales.
COVID SHOT REVENUE TOPS EXPECTATIONS
Moderna's COVID shot brought in $971 million in the third quarter, beating Wall Street expectations of $783 million. At its pandemic peak in 2022, the vaccine generated $18.4 billion in sales.
Moderna is banking on revenue from newer vaccines using mRNA technology, including mRESVIA for RSV and an experimental COVID/flu combination shot, to make up for declining COVID revenue.
But the company reported $2 million in third-quarter sales of the respiratory syncytial virus vaccine, well below the $20.9 million analysts expected, as it struggled to compete with Pfizer's Abrysvo and GSK's GSK.L Arexvy.
Moderna said it was awaiting further guidance from the FDA on refiling for its combo shot, after withdrawing its application in May to wait for efficacy data from a late-stage trial of its influenza vaccine.
The company reported third-quarter revenue of $1 billion, a 45% drop from a year ago, but ahead of analysts' estimates of $886.54 million, according to LSEG data.
The Cambridge, Massachusetts-based vaccine maker reported a quarterly loss of 51 cents per share, far smaller than analysts' expectations of a $2.11 loss.
Moderna trimmed its adjusted operating expenses outlook for 2025 by $700 million to a range of $5.2 billion to $5.4 billion.
(Reporting by Patrick Wingrove in New York and Christy Santhosh in Bengaluru; Editing by Bill Berkrot, Rod Nickel)
((Patrick.Wingrove@thomsonreuters.com;))