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Why Moderna Stock Soared Today

By Evan Niu, CFA - Feb 26, 2020 at 1:56PM

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The biotech company reported fourth-quarter earnings and has shipped a coronavirus vaccine for testing.

What happened

Shares of Moderna (MRNA -0.37%) have soared today, up by 19% as of 12:45 p.m. EST, after the company reported fourth-quarter earnings results. The biotech missed revenue expectations but investors were excited that it has shipped its first batch of a vaccine for the coronavirus.

So what

Revenue in the fourth quarter declined to $14.1 million, shy of the $17.4 million in sales that analysts were expecting. That resulted in a net loss of $124.2 million, or $0.37 per share, which was better than the consensus estimate of $0.42 per share in red ink. Moderna has shipped its clinical-grade batch of the novel coronavirus vaccine to the National Institutes of Health (NIH) for use in a phase 1 study in the U.S.

Coronavirus vaccine in a bottle

Image source: Getty Images.

"The Moderna team continues to execute our strategy, including our CMV Phase 2 study enrolling ahead of plan, shipping the coronavirus Phase 1 clinical materials to NIH/NIAID in just 42 days, and announcing five new development candidates in the last two months," CEO Stephane Bancel said in a statement. "We have up to $2 billion of capital to invest in the Company, a great team, a powerful mRNA platform and a state-of-the-art manufacturing site. I am more energized than ever about our future."

Now what

Moderna raised $550 million through a secondary equity offering earlier this month, with underwriters exercising options to purchase additional shares. In addition to grant funding and nearly $1.3 billion in cash on the balance sheet as of the end of 2019, the biotech company has access to $2 billion in capital.

For 2020, Moderna expects to spend roughly the same amount of cash -- between $490 million and $510 million -- on operating activities and capital expenditures as it did in 2019.

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Moderna, Inc. Stock Quote
Moderna, Inc.
MRNA
$171.18 (-0.37%) $0.63

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