11:14 AM EDT, 08/01/2024 (MT Newswires) -- Moderna ( MRNA ) reported better-than-expected second-quarter results on Thursday but lowered the full-year product sales guidance for its respiratory business amid growing competition in the US and low demand in the European Union.

The company now anticipates net product sales from its respiratory franchise to be in a range of $3 billion to $3.5 billion, down from its prior outlook of $4 billion. Moderna ( MRNA ) said the decrease is due to "very low" sales expected in the EU this year, potential revenue deferrals for certain international sales into 2025 and an increasingly competitive environment for respiratory vaccines in the US.

"We remain committed in our attempt to mitigate these risks, but believe it's appropriate to adjust our guidance at this time," Chief Financial Officer Jamey Mock said during an earnings call, according to a Capital IQ transcript. The company's shares tumbled 18% in Thursday trading.

For the second half, Moderna ( MRNA ) expects a sales split of 40% to 50% in the ongoing quarter, with the remaining balance in the fourth quarter, depending upon regulatory approvals. It reiterated its full-year forecast for research and development expenses and selling, general and administrative costs at about $4.5 billion and $1.3 billion, respectively.

The drugmaker posted a net loss of $3.33 a share for the June quarter, compared with a $3.62 loss the year before. The consensus on Capital IQ was for a per-share loss of $3.35.

Overall revenue declined to $241 million from $344 million in the prior-year quarter, as sales of Moderna's ( MRNA ) Spikevax COVID-19 vaccine plunged 37% to $184 million. The reduction in product sales aligns with the expected shift to a seasonal COVID-19 vaccine market, with higher demand anticipated in the fall and winter, according to the company. The topline came in ahead of the Street's view for $134.9 million.

"During the second quarter, we marked the approval of our second mRNA product and significantly lowered our operating costs," Chief Executive Stephane Bancel said in a statement. "We remain focused on execution for the 2024-25 COVID season and the launch of our (respiratory syncytial virus) vaccine in the US."

Cost of sales decreased to 62% of product revenue from 249% in the prior-year quarter. Selling, general and administrative expenses fell 19% to $268 million, while research and development costs increased 6% to $1.22 billion, the company said.

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