Moderna(MRNA) - 2024 Q2 - Quarterly Report

Financial Performance - The company reported net product sales of $184 million for Q2 2024 from its COVID-19 vaccine, a decrease from$ 293 million in Q2 2023[107]. - Total revenue for Q2 2024 was $241 million, a decrease of 30% compared to$ 344 million in Q2 2023[117]. - Net product sales in Q2 2024 were $184 million, down 37% from$ 293 million in Q2 2023[117]. - Net loss for Q2 2024 was $1.279 billion, a slight improvement of 7% from a net loss of$ 1.380 billion in Q2 2023[117]. - Total revenue for the first half of 2024 was $408 million, an 82% decrease from$ 2.206 billion in the first half of 2023[117]. - Net product sales for the first half of 2024 were $351 million, down 83% from$ 2.121 billion in the first half of 2023[117]. - The company reported a net loss of $2.5 billion for the six months ended June 30, 2024, compared to a net loss of$ 4.7 billion for the year ended 2023[147]. Research and Development - The company has a diverse pipeline with 40 development candidates across 47 programs, with 43 currently in clinical studies[99]. - The FDA approved mRESVIA (mRNA-1345) for adults aged 60 and older, showing a vaccine efficacy of 83.7% against RSV lower respiratory tract disease in a Phase 3 trial involving approximately 37,000 adults[103]. - The next-generation COVID-19 vaccine candidate (mRNA-1283) demonstrated non-inferior efficacy compared to Spikevax in a Phase 3 trial for participants aged 12 and older[108]. - A combination vaccine candidate against influenza and COVID-19 (mRNA-1083) showed higher immune responses than licensed vaccines in adults aged 50 and older[110]. - The investigational therapy for Methylmalonic Acidemia (mRNA-3705) was selected for the FDA's START pilot program to expedite development for rare diseases[113]. - The company is actively enrolling in Phase 3 trials for mRNA-4157 (V940) in combination with KEYTRUDA for high-risk melanoma and non-small cell lung cancer[112]. Sales and Market Activity - The company commenced sales of its COVID-19 vaccine to the U.S. commercial market in Q3 2023, expanding its sales channels[120]. - The U.S. COVID-19 vaccine sales are primarily to wholesalers and distributors, with some sales to retailers and healthcare providers[120]. - Net product sales for the three and six months ended June 30, 2024, decreased by $109 million (37%) and$ 1.8 billion (83%), respectively, compared to the same periods in 2023, primarily due to lower sales volumes and the transition to a seasonal commercial pattern for the COVID-19 vaccine market[124]. Expenses and Cash Flow - Operating expenses for Q2 2024 totaled $1.604 billion, a reduction of 27% from$ 2.211 billion in Q2 2023[117]. - Research and development expenses increased by 6% to $1.221 billion in Q2 2024, compared to$ 1.148 billion in Q2 2023[117]. - Selling, general and administrative expenses decreased by $64 million (19%) for the three months ended June 30, 2024, compared to the same period in 2023, mainly due to reduced consulting and outside services[131]. - Cash, cash equivalents, and investments as of June 30, 2024, decreased by$ 2.5 billion (19%) compared to December 31, 2023, primarily due to a net cash outflow from operating activities[138]. - Net cash used in operating activities for the six months ended June 30, 2024 was $2.3 billion, an increase of$ 123 million, or 6%, compared to the same period in 2023[143][144]. - Net cash provided by investing activities was $1.8 billion, primarily from proceeds of$ 5.5 billion from maturities and sales of marketable securities[145]. - Net cash provided by financing activities increased by $1.3 billion, or 104%, to$ 48 million for the six months ended June 30, 2024[146]. Deferred Revenue and Taxation - Deferred revenue as of June 30, 2024, was $740 million, primarily associated with customer deposits for COVID-19 vaccine deliveries scheduled in 2024[122]. - The provision for income taxes increased by$ 369 million (100%) and $763 million (101%) for the three and six months ended June 30, 2024, compared to the same periods in 2023, due to taxable income from foreign subsidiaries[136]. - Deferred revenue related to customer deposits received or billable was$ 740 million as of June 30, 2024[142]. Future Outlook - The company anticipates significant future capital requirements for ongoing research and development activities, including new vaccine candidates and manufacturing costs[148]. - Cash, cash equivalents, and investments as of June 30, 2024, are expected to be sufficient to fund projected operations and capital expenditures for at least the next 12 months[149]. - The company experienced a decline in customer demand for its COVID-19 vaccine in 2023, continuing into the first half of 2024[149].