ModernaMRNA

The U.S. Food and Drug Administration approved Moderna's seasonal flu vaccine, mFLUSIVA, for adults aged 50 and older. This is the first time a flu shot using messenger RNA (mRNA) technology, the same method used for COVID-19 vaccines, has been cleared for use. The company expects to have the vaccine available at some retailers in the coming weeks.

This approval is a critical milestone for the company's plan to move beyond its dependence on COVID-19 sales. By entering the flu market, Moderna is trying to prove its technology can compete in a crowded field of traditional vaccines. Success here is vital for the company to reach its goal of growing revenue as pandemic-related demand continues to fade.

Source: Barrons

Moderna reported a loss of $1.97 per share for the second quarter, which was slightly better than the $2.03 loss analysts expected. Revenue reached $140 million, also beating expectations. The company improved its full-year outlook by cutting about $200 million in expected operating expenses and raising its year-end cash target to between $4.7 billion and $5.2 billion.

However, the results were mixed. While the company is doing a better job of controlling its spending, it faced a setback with its norovirus vaccine candidate, which failed to meet the criteria for early success in a Phase 3 trial. The stock fell as the market remains focused on the ongoing decline in COVID-19 vaccine sales and the pressure on management to prove the next wave of products can fill that gap.

See the full quarter, and how our tracked metrics did

Source: 8-K filing

Key highlights

• Revenue outlook remains steady: The company expects to deliver up to 10% revenue growth for the full year 2026, which is consistent with its previous goals as it moves beyond a reliance on COVID vaccines. Management predicts that 55% of all sales for the second half of the year will arrive in the third quarter.
• Spending targets lowered: Management reduced its expected research and development spending for the year to $2.9 billion, a drop from the earlier $3.0 billion estimate. This shift, along with other cost cuts, helped the company raise its projected year-end cash balance to a range of $4.7 billion to $5.2 billion.
• Pipeline progress and setbacks: Moderna expects its seasonal flu vaccine to receive a U.S. approval decision by August 5, 2026, which would mark its fifth approved product. However, its norovirus vaccine candidate failed to meet the requirements for early success in a large Phase 3 trial, meaning the company must now enroll more patients to continue the study.
• Operating efficiency improving: Cost of sales fell 22% to $93 million compared to the same time last year, mostly because the company became more efficient at using its manufacturing plants. This helped offset $41 million in inventory write-downs, which is the cost of throwing away products that can no longer be sold.
• Shift toward global markets: International sales reached $58 million this quarter, representing 40% of total revenue. While this is a significant portion of the business, it is down from the 80% share seen in the first quarter of the year as U.S. sales made up a larger piece of the mix.

Our take: A productive quarter that shows the company is successfully narrowing its losses and tightening its belt. Lowering the full year spending outlook by $200 million is a smart move that protects the cash needed to fund its massive pipeline. The 10% growth target is modest, but meeting it would prove the business can grow without a pandemic tailwind.