Moderna Reports 66% Drop in Covid Vaccine Sales in 2023

Moderna announced on Monday that its Covid vaccine sales plummeted by about two-thirds in 2023 to $6.7 billion, as fewer people opted for the updated version of the jab. Despite the decline, the revenue from the shots met Moderna’s forecast for the year, although it was significantly lower than the more than $18 billion the company generated in 2022.

Decreased Demand for Covid Products

The sharp drop in demand for Covid products last year is evident in Moderna’s announcement, which came ahead of its presentation at the annual JPMorgan Healthcare Conference. As cases decreased and public concern about the virus waned, demand for Moderna’s shot, its sole commercially available product, weakened. This decline in demand caused Moderna’s shares to fall by almost 45% in 2023.

Revenue Breakdown

Roughly $6.1 billion of Moderna’s revenue from the shot came from vaccine sales, while an additional $600 million was deferred revenue related to the company’s collaboration with Gavi, a global vaccine organization. Moderna did not provide a specific range for its full-year Covid vaccine sales guidance but had previously forecasted at least $6 billion during its third-quarter earnings report.

Market Share and Future Outlook

Moderna captured 48% of the U.S. Covid vaccine market share in 2023, an increase from the 37% market share it held in 2022. However, the company anticipates further sales decline for the shot in 2024 and reiterated its full-year sales guidance of approximately $4 billion. Moderna expects to return to sales growth in 2025 with the launch of new products, including a combination shot targeting Covid and the flu.

The company currently has 45 products in development, with nine in late-stage trials. Moderna aims to achieve break-even status by 2026.