Suryaa Business Desk: International biotechnology company Moderna has significantly increased its full-year revenue growth projections. The company revised its annual revenue growth forecast from a previous maximum of 10 percent to a range of 15 to 25 percent. This adjustment follows increased Covid-19 vaccine sales in international markets and higher income from partnership agreements, which contributed to unexpected financial results in the third quarter. Following the announcement, the company's shares saw strong buying support on U.S. stock exchanges.
Moderna reported a net profit of $162 million for the third quarter, surpassing analyst expectations, compared to a net loss of $200 million in the same quarter last year. Total quarterly revenue rose 29 percent year-on-year to $1.31 billion, driven primarily by accelerated deliveries of Covid-19 vaccines in international markets.
Profitability was further supported by cost-control measures, with research and development expenses decreasing by 27 percent to $583 million. The company also limited its annual capital expenditure forecast to $200 million. Management stated that cash and investment reserves are expected to remain strong, between $8.1 billion and $8.3 billion, by the end of the current fiscal year.
Regarding its product pipeline, the company confirmed that the regulatory approval process for "Intismeran," a cancer vaccine being developed in partnership with Merck, is on track. The shift to profitability and the increased annual guidance have boosted investor confidence, leading to gains for Moderna shares in the biotechnology sector.
