Moderna, Inc. Q1 FY2025 earnings call

Financials - Q1 results were in line with expectations, with revenues and loss as stated. Cost of sales, R&D, SG&A combined were reduced by 19% YOY compared to Q1 2024. ### Expanded markets for commercial products - Awarded COVID vaccine tender in Europe, mRESVIA approved in Australia, Taiwan, UK, Switzerland and other regions. ### Pipeline and diversification - Expanded oncology portfolio with Checkpoint medicine, Phase 3 flu program exceeded case accruals, INT renamed Intismeran autogene, updates on respiratory (next-gen COVID, RSV, flu), CMV, norovirus, rare diseases and oncology programs. ### Cost discipline - Third consecutive quarter of double-digit YOY reduction in R&D and SG&A combined. Plan to drive $1.4 - $1.7 billion of cost reductions by 2027, with 2026 GAAP operating expense range revised and 2027 cash cost target set.

In Q1, Moderna's revenues were $0.1 billion with a loss of $1 billion. Net product sales were $86 million, primarily driven by COVID vaccine sales, with the US accounting for about a third and international markets making up the rest. Other revenue was $22 million, bringing total revenue for the quarter to $108 million, a 35% year-over-year decrease but in line with expectations. Cost of sales for the quarter was $90 million, a $6 million decrease compared to Q1 2024, mainly due to lower sales volume. R&D expenses were $856 million, a 19% year-over-year decrease, driven by lower clinical development spend on respiratory programs. SG&A expenses were $212 million, down 23% year-over-year due to broad-based cost reductions. The company ended the quarter with $8.4 billion in cash and investments.

2025 - Total revenue range $1.5 - $2.5 billion, first half sales ~$0.2 billion. Cost of sales ~$1.2 billion, R&D ~$4.1 billion, SG&A ~$1.1 billion, taxes negligible, cap ex ~$400 million, end 2025 with ~$6 billion in cash. ### Beyond 2025 - 2026 GAAP operating expense range $5.4 - $5.7 billion, cash cost midpoint ~$4.7 billion. 2027 GAAP expenses $4.7 - $5 billion, cash cost midpoint ~$4.2 billion. Plan to achieve $1.4 - $1.7 billion cost reductions by 2027 to reach 2028 cash breakeven target.

• Uncertainties in vaccination rates, competitive market environment, RSV market size, and licensure timing of factories and product approvals. - Regulatory uncertainties in product approvals and submissions. - Potential impact of global tariffs on costs. - Occasional rare adverse events like GBS in clinical trials.

Q: Hey, guys. This is Shelby [ph] on for Luca, and thanks for taking our question. Maybe following up on the political landscape. RFK is on record arguing there is no evidence that a single antigen vaccine ever worked for respiratory diseases. He also claims he is working on multi-antigen vaccines. Do you know what he means by that? And also maybe bigger picture, how confident are you that your upcoming PDUFA will be reviewed based on the risk benefit profile of the molecules and not political agendas. Any thoughts much appreciated.

A: Stephen Hoge said he can't comment on RFK's statements, but noted their products have demonstrated efficacy, and they are confident in FDA reviews following science, with constructive exchanges and confidence in data for PDUFA reviews.