By Leroy Leo and Patrick Wingrove
(Reuters) – Moderna Inc on Thursday raised its annual forecast for COVID-19 vaccine sales to up to $8 billion on hopes of a boost in the fall season as sales move to a private market in the United States from government contracts.
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Sales of COVID-19 products have slumped after bumper growth during the peak of the pandemic. But Pfizer and Moderna are pinning their hopes on private markets sales and strong demand for their new updated shots targeting XBB.1.5 variant.
Moderna expects $6 billion to $8 billion in sales from its COVID shots this year, up from its previous forecast of $5 billion, driven by potential U.S. demand for 50 to 100 million doses in the fall season.
The company sees between $2 billion and $4 billion in the vaccine sales from commercial contracts in the United States and other places. However, it said $1 billion of its previous forecast of a total $5 billion in sales from signed government contracts would be deferred to next year.
Pfizer on Tuesday warned that sales of COVID vaccines were uncertain, adding that the COVID vaccination rates this fall should be a good predictor for annual rates. Sales of Pfizer’s COVID-19 vaccine fell 83% in the second quarter.
For Moderna, second-quarter COVID vaccine sales slumped 94% to $293 million, which was still higher than analysts’ average estimate of $233.6 million, according to Refinitiv data.
It reported a net loss of $3.62 per share, narrower than analysts’ average estimate of a $4.04 loss.
Moderna’s quarterly financials were hurt by inventory writedowns and other charges worth $674 million, driven by a shift in product demand to the updated COVID shot as well as a decline in customer demand.
(Reporting by Leroy Leo in Bengaluru and Patrick Wingrove in New York; Editing by Shinjini Ganguli)
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