Moderna surprise profit lifts shares
Moderna delivers a surprise profit and the announcement of its road map for its experimental RSV vaccine. IGTV's Angeline Ong looks tracks the market reaction.
(AI Video Summary)
Moderna surprises with huge Q4 profits
Moderna, a prominent company in the pharmaceutical industry, pleasantly surprised investors by reporting a profit of $217 million for the fourth quarter. This came as a shock to analysts who were predicting a loss. The company achieved these positive numbers by implementing cost-cutting measures and deferring payments. However, what really thrilled investors was Moderna's future prospects and its plan for an experimental treatment for respiratory syncytial virus (RSV).
Development of new drugs
The announcement about Moderna's RSV treatment caused its stock price to jump up by approximately 6%. Like other pharmaceutical companies, Moderna has been aiming to shift its focus from covid-related products to new pipeline drugs that can fuel growth in the coming years. In 2023, the company's revenue decreased by 44.6%, pushing it to rely on products like cancer drugs, influenza drugs, and vaccines such as the RSV treatment to make up for the decline in covid-related revenue.
Overall, Moderna's unexpected profit and promising outlook have captured the attention of investors, leading to a surge in its stock price. This demonstrates the company's determination to overcome the challenges posed by declining covid-related products by developing new drugs and diversifying its sources of revenue.
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