Moderna continues to resize manufacturing, takes $238M write-down in Q4 2024

Vaccine maker Moderna announced financial results for the fourth quarter and full-year 2024, including a loss of $238 million on a non-cash charge related to its manufacturing resizing.

Moderna, which has struggled with declining COVID-19 vaccine sales, launched a strategic cost initiative in the third quarter of 2023 to resize manufacturing operations. The company on Friday said wind-down costs incurred in the fourth quarter of 2024, as part of its cost-cutting efforts, included the non-cash charge of $238 million related to the “termination of a contract manufacturing agreement.”

In Friday’s conference call with analysts, CFO Jamey Mock said the scaling down of manufacturing, as well as reductions in purchased services and external consultants, were necessary as Moderna continues to “focus on cost management and operational efficiencies.”   

Jefferies analyst Michael Yee in a note to investors said the one-time charge of $238 million for the termination of a contract manufacturing agreement is in line similar actions by Moderna which “have been recurring in prior quarters as volumes were not meeting likely expectations, so they have write-downs for not using it all and/or from contracting.”

Moderna reported in its full-year 2024 results that it reduced costs by 27% compared to 2023. By the end of 2025, the company is expecting to cut costs by $1 billion versus last year.

Mock told analysts that Moderna intends to achieve additional cost efficiencies in 2025 and beyond “by prioritizing investments to support the 10 product launches over the next three years.”