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(Sharecast News) - Moderna shares rose in early trading on Friday after the US biotechnology company raised its full-year revenue forecast following stronger-than-expected third-quarter sales and a return to profit.
The company now expects revenue growth of 15% to 25% in 2026, up from previous guidance of up to 10%, driven by stronger demand for its Covid-19 vaccines in international markets.
Third-quarter revenue jumped 29% to $1.31bn from $1.02bn a year earlier, with US sales contributing $780m and international markets accounting for $533m.
Net income reached $162m, compared with a $200m loss in the corresponding period last year, while diluted earnings per share improved to $0.38 from a loss of $0.51.
The improvement was supported by lower operating expenses, with research and development spending falling 27% to $583m following the completion of several late-stage clinical studies and continued cost-cutting measures.
Chief executive Stéphane Bancel said: "Building on this momentum, we increased our full-year revenue growth outlook to 15%-25%, while continuing to reduce costs and strengthen our balance sheet."
Moderna also lowered its expected full-year research and development spending to approximately $2.7bn from $2.9bn, while lifting its projected year-end cash and investments balance to between $8.1bn and $8.3bn, compared with previous guidance of $4.7bn to $5.2bn.
The company highlighted positive late-stage trial results for its experimental personalised cancer vaccine, intismeran, developed with Merck, which reduced the risk of melanoma recurrence or death by 42% when combined with Keytruda compared with Keytruda alone.
Moderna and Merck are preparing regulatory submissions ahead of a potential commercial launch, subject to approval.
The group also received US regulatory approval for its seasonal influenza vaccine mFlusiva, marking its fifth approved product globally.
The stock was up 3.4% at $249.75 by 0952 GMT.
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