Moderna swings to $2.8bn profit as revenues soar on Covid-19 vaccine

Revenue jumped to $4.4bn in the second quarter from $67m in the same period in 2020

Moderna swung to a profit in the second quarter from a loss in the same period a year ago, as the US pharmaceutical and biotech company's revenue surged on the back of its messenger RNA Covid-19 vaccine, which it said had a 93 per cent efficacy rate six months after the second shot.

The Cambridge, Massachusetts-based company's net income climbed to about $2.8 billion in the three months to the end of June compared with a net loss of $117 million for the same period in 2020, it said in a statement on Thursday.

Total revenue surged to $4.4bn in the second quarter from $67m in the same period a year earlier. Almost all of the revenue is from the company's Covid-19 vaccine. For the first half the of the year revenue hit $6.3bn compared with $75m for the same period in 2020.

“I am proud of the progress our teams at Moderna have made in the past quarter in advancing our development pipeline while addressing a global pandemic and quickly establishing global manufacturing and commercial organisations,” said Stephane Bancel, chief executive of Moderna.

“We are pleased that our Covid-19 vaccine is showing durable efficacy of 93 per cent through six months, but recognise that the Delta variant is a significant new threat so we must remain vigilant.”

Mr Bancel said the company is “looking forward towards our vision of a single dose annual booster that provides protection against Covid-19, flu and RSV for adults".

The company signed orders worth $20bn for Covid-19 vaccines for 2021 and has also agreed $12bn in vaccine sales for next year with options for $8bn more.

"Numerous additional negotiations are still ongoing for 2022," it said.

Moderna's share price has quadrupled since the beginning of the year to $419 on August 4 from $111.73 in January, giving it a market value of $168bn.

The company joined the S&P 500 last month and is the index’s best performing stock this calendar year, according to Bloomberg data.

Moderna has received emergency or other conditional interim or provisional authorisation for use of its Covid-19 vaccine in adults from health agencies in more than 50 countries and an emergency use listing from the World Health Organisation. It also received authorisation for use of its Covid-19 vaccine in adolescents age 12 and over in the European Union and Japan.

The company currently has 23 mRNA development programmes in its portfolio, 15 of which have entered clinical studies.

Updated: August 11th 2021, 4:11 AM