- Moderna lowered its annual sales forecast as sales of its COVID-19 vaccine dropped by 37%.
- The company's vaccine sales struggled especially in Europe, where Pfizer has a deal until 2026.
- Shares of Moderna fell as much as 21% on Thursday as a result.
People are getting fewer COVID-19 shots, and it's hitting former vaccine heavyweight Moderna, new earnings show.
The company's second quarter revenue dropped to $241 million, compared to $344 million a year ago, as sales of its COVID-19 vaccine dropped 37% year-over-year.
The company's executives told investors that this drop reflects a more seasonal COVID-19 vaccine market, where people will likely get the vaccine during the fall and winter. It also acknowledged that it's been all but shut out of the European vaccine market.
Moderna also lowered its sales forecast for the year to between $3 billion and $3.5 billion, down from its previous forecast of around $4 billion.
Its stock tumbled as much as 21% on Thursday.
The sales slump also indicates tougher competition in Europe, where Moderna's vaccine sales saw especially drastic losses after Pfizer renegotiated a contract with the bloc that ends in 2026.
"Given where we are in the season combined with where we are in the budget season for many countries and their existing supplies," there's a "very low probability" of high sales in Europe this year," CEO Stephane Bancel told analysts on the earnings call.
Moderna executives also pointed to more competition in respiratory vaccines in the US, though said that its seeing positive results from recent trials of its new RSV vaccine mRESVIA and dual Covid-19 and flu vaccine.
Competitor Pfizer also saw a decline in Covid-19 shots last quarter, but managed to surpass analyst expectations and raise its full-year outlook with broad cost cuts and sales of its non-Covid products.