Moderna Inc

MRNA

Moderna Inc

@philfischerflank
• 3 months ago

Challenge Day 1

How Do They Make Money?

Moderna is a leading developer of messenger RNA (mRNA) technology and is working to transform how diseases are prevented and treated. mRNA is the cell’s instruction sheet: it carries genetic information to the ribosome (cellular protein-making machinery), which then produces specific proteins. Moderna designs synthetic mRNA so cells produce proteins that can generate a therapeutic effect or prevent disease.

Moderna is developing mRNA medicines across multiple franchises, including respiratory viruses, latent and other viral diseases, immuno-oncology, autoimmune diseases, and rare diseases. Its stated mission is to deliver the greatest possible impact to people through mRNA medicines.

From an accounting and business-model standpoint, Moderna operates as a single reporting segment focused on discovering, developing, and commercializing mRNA medicines. It generates revenue in three main categories:

  • Net product sales: sales of Moderna-marketed vaccines (and, in the future, therapeutics) to governments, health systems, and commercial customers. This has been the overwhelming majority of revenue (99% in 2024), driven primarily by Spikevax.

  • Grant revenue: reimbursements from governments and other funders (e.g., BARDA and similar public/private organizations) that support specific R&D programs (1% of revenue in 2024; in 2023, about $94M grants vs $6.67B product sales).

  • Collaboration, licensing, and royalty revenue: payments from partners (e.g., Merck, Vertex, AstraZeneca) including upfront and milestone payments, cost-sharing/reimbursements for joint development (e.g., personalized cancer vaccines with Merck), and potential future milestones plus profit-sharing/royalties if partnered products succeed.

Commercially, Moderna sells like a typical biopharma company: it signs supply contracts, manufactures doses, ships product, and recognizes revenue when control of the product transfers to the customer.

Sources: https://www.sec.gov/Archives/edgar/data/1682852/000130817925000081/mrna013406-ars.pdf
https://www.dcfmodeling.com/blogs/health/mrna-financial-health

https://www.sec.gov/Archives/edgar/data/1682852/000168285224000010/exhibit9912023q4pressrelea.htm

https://www.sec.gov/Archives/edgar/data/1682852/000168285224000015/mrna-20231231.htm