Moderna writes off $500 million of unused COVID-19 vaccines

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    American biotechnology company Moderna presented the report for the second quarter of the current year. According to the company, sales volumes for the reporting period were $4.7 billion (up 9% compared to the same period last year), which was higher than the forecasts of analysts polled by Refinitiv, who predicted sales of $4.1 billion. Net quarterly income was $2 .2 billion, which is 20% lower than last year.

    Adjusted net income per share, as follows from the reporting, amounted to $ 5.24, which is less than the same period last year by 18%. Nevertheless, Refinitiv analysts assumed that this figure would be only $4.55. As a result, investors considered the financials to be good, and the company’s stock quotes rose by 5% in over-the-counter trading.

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    Moderna reported that its costs for the reporting period amounted to $1.4 billion. The company had to write off about $500 million – this is the cost of unsold vaccines that either expired or ended before they could be used. In addition, the company lost approximately $315 million in expenses related to the COVID-19 vaccine in one way or another (vaccine order recalls, production downtime, etc.).

    Last week, however, the company announced an agreement with the US authorities for the supply of 66 million doses of an updated vaccine against new Omicron sub-variants – BA.4 and BA.5 – with an option to supply another 234 million doses.

    Yaroslav Plaksin