Staff or Guest writer for The Dog of Wall Street.

2020-08-05 09:16

Moderna, Inc. (Nasdaq: MRNA),a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines to create a new generation of transformative medicines for patients, today reported financial results and provided business updates for the second quarter of 2020 and highlighted pipeline progress.

Here the highlights:

• Cash Position: Cash, cash equivalents and investments as of June 30, 2020 and December 31, 2019 were $3.07 billion and $1.26 billion, respectively.

• Net Cash Used in Operating Activities: Net cash used in operating activities was $130.1 million for the six months ended June 30, 2020 compared to $252.9 million for the same period in 2019. Net cash used in operating activities decreased significantly in 2020 mainly due to an increase in deferred revenue attributable to deposits of $75.0 million received in the second quarter of 2020 for potential supply of mRNA-1273. Net cash used in operating activities includes $22.0 million for the six months ended June 30, 2019, of in-licensing payments to Cellscript, LLC to sublicense certain patent rights.

• Cash Used for Purchases of Property and Equipment: Cash used for purchases of property and equipment was $24.9 million for the six months ended June 30, 2020 compared to $18.2 million for the same period in 2019.

• Revenue: Total revenue was $66.4 million for the three months ended June 30, 2020 compared to $13.1 million for the same period in 2019. Total revenue was $74.7 million for the six months ended June 30, 2020 compared to $29.1 million for the same period in 2019. Total revenue increased for both three and six month periods in 2020, due to increases in both collaboration revenue and grant revenue. The collaboration revenue increases in both three and six month periods were mainly attributable to an increase in revenue in the second quarter, particularly from AstraZeneca. The increases in grant revenue for both periods were primarily due to our BARDA agreement, related to our mRNA-1273 vaccine candidate development.

• Research and Development Expenses: Research and development expenses were $151.9 million for the three months ended June 30, 2020 compared to $128.3 million for the same period in 2019. Research and development expenses were $267.0 million for the six months ended June 30, 2020 compared to $258.7 million for the same period in 2019. The increases for both three and six month periods in 2020 were mainly due to increases in personnel related costs, an increase in consulting and outside services, and an increase in stock compensation expenses, largely driven by increased headcount and mRNA-1273 clinical development.

• General and Administrative Expenses: General and administrative expenses were $36.6 million for the three months ended June 30, 2020 compared to $28.5 million for the same period in 2019. General and administrative expenses were $60.7 million for the six months ended June 30, 2020 compared to $55.7 million for the same period in 2019. The increases for both three and six month periods in 2020 were mainly due to an increase in personnel related costs and an increase in legal related costs, primarily attributable to increased headcount and mRNA-1273 vaccine candidate development related activities.

• Net Loss: Net loss was $116.7 million for the three months ended June 30, 2020 compared to $134.9 million for the same period in 2019. Net loss was $240.9 million for the six months ended June 30, 2020 compared to $267.5 million for the same period in 2019.

Stéphane Bancel, Moderna’s Chief Executive Officer said:

“The second quarter marked a new growth phase for Moderna as we started to build our commercial team, a historic moment for those of us who have worked at the company for many years since it was a breakthrough research enterprise. We would like to thank the entire Moderna team for their commitment to our mission of delivering on a new class of medicines for patients. In the second quarter, we began discussions with several countries for supply agreements for mRNA-1273 and as of July 31, we have received approximately $400 million of customer deposits for potential supply. As we pivot to a commercial stage company, we recognize the need for responsible pricing in the face of the pandemic. We look forward to continuing our progress as we prepare for the Phase 3 readout and the expected subsequent filing of our BLA.”

Moderna updates 2020 guidance to reflect investments into mRNA-1273, the Company now expects net cash used in operating activities and for purchases of property and equipment to be between $0.65 to $0.85 billion; this includes approximately $400 million of customer deposits received as of July 31, 2020 for potential supply of mRNA-1273.