Moderna Stock Dips as Uncertainty Looms Over COVID-19 Vaccine Demand
Moderna's shares hit a nearly three-year low amid cautious forecasts on COVID-19 vaccine demand, despite maintaining full-year revenue guidance.
Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital platforms, leading teams in delivering impactful news coverage on major global events.
Essential Insights
- Moderna's stock price dropped to its lowest in almost three years after reaffirming its annual revenue projections but highlighting uncertainty in COVID-19 vaccine demand.
- The company emphasized that the U.S. vaccination season is still in its early stages, making it difficult to forecast precise vaccine uptake.
- This update follows Pfizer's recent revision of its outlook, citing reduced demand for COVID-19 related products.
On Monday, Moderna (MRNA) emerged as the weakest performer in the S&P 500 index, with shares declining over 6%. The biotech firm maintained confidence in its full-year financial guidance but expressed caution about predicting exact demand levels for its COVID-19 vaccines. This announcement came shortly after Pfizer (PFE) lowered its annual forecast specifically due to decreased demand for COVID-19 products.
In a regulatory filing, Moderna projected 2023 sales between $6 billion and $8 billion, consistent with its second-quarter earnings report released in August. The company previously indicated that if the U.S. vaccine market reaches approximately 50 million doses, revenue would likely fall in the lower half of this range; if demand climbs to 100 million doses, revenue could approach the higher end.
Moderna stated that it remains "too early in the U.S. vaccination season to accurately estimate full-year vaccination rates."
The firm expects to gain clearer insights into the U.S. vaccine market size by the end of the month and plans to share updates during its earnings call scheduled for November 2.
Following these developments, Moderna's shares declined to their lowest point in nearly three years. Conversely, Pfizer's stock experienced gains after Jefferies upgraded it, highlighting potential investment opportunities.
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