(CTN News) – Moderna shares dropped to a three-year low after the biotech company reiterated its full-year guidance but warned that it wasn’t yet in a position to predict demand for the COVID-19 vaccine.
A spokesperson for Moderna said it is too early in the vaccination season in the U.S. to determine what the demand for the shots will be in the near future.
There has been an update issued after rival Pfizer cut its outlook, citing a lack of demand for COVID-19 products as the reason for the cut.
On Monday, Moderna (MRNA) was the worst-performing stock in the S&P 500 as shares declined more than 6% after the biotech firm said it was “comfortable” with its full-year guidance, but warned that it couldn’t forecast the exact demand for its COVID-19 vaccines just yet.
In response to the comments, rival Pfizer (PFE) slashed its full-year outlook and stated that the cut was “solely due to COVID products.”.
The company stated in a regulatory filing that it expects its revenue for 2023 to be between $6 billion and $8 billion, reiterating what it reported in its earnings announcement in August for its second quarter.
It was previously estimated by the Moderna company that if the U.S. market for vaccines reached approximately 50 million doses, then it would be in the bottom half of that revenue range, and if that number jumps to 100 million doses, then it would be in the top half of the revenue range.
As Moderna explained, it is still too early in the U.S. vaccination season to accurately predict where vaccination rates will land for the remainder of the year at this point in time.
At the end of the month, the company anticipates that it will have a better understanding of the expected size of the U.S. market, and will provide an update during its earnings call on November 2.
Upon hearing the news, Moderna shares dropped to their lowest level in almost three years as a result. The shares of Pfizer rose, on the other hand, after Jefferies upgraded the stock, identifying it as one of the best opportunities in the market.