Moderna's (MRNA) fourth-quarter loss came in higher than Wall Street's expectations as its sales fell amid the impact of an early launch of the drugmaker's updated COVID-19 vaccine in the US.

The company posted a net loss of $2.91 a share for the December quarter, compared with earnings of $0.55 the year before. The consensus on FactSet was for a per-share loss of $2.89. Overall revenue dropped to $966 million from $2.81 billion last year, but topped the Street's view for $942.8 million. Shares of the firm fell 5% in the most recent premarket activity.

Product sales tumbled 66% year over year to $938 million mainly due to the earlier launch of its updated COVID-19 vaccine in the US, which shifted sales into the third quarter, according to Moderna. International sales fell year over year, reflecting the continued phase-out of advance purchase agreements.

The company's Spikevax COVID-19 vaccine sales totaled $923 million, including $244 million in the US and $679 million in international markets. The firm's respiratory syncytial virus, or RSV, vaccine mRESVIA logged $15 million in revenue during the fourth quarter.

"We have made progress in 2024 across our late-stage pipeline and cost reduction efforts," Chief Executive Stephane Bancel said in a statement. "Our team successfully filed three Biologics License Applications in the final months of the year and reduced our costs by 27% compared to 2023."

Cost of sales increased to 79% of product revenue from 33% in the prior-year quarter. Cost of sales included inventory write-downs of $193 million and a non-cash charge of $238 million related to the termination of a contract manufacturing agreement in the fourth quarter, the company said. Selling, general and administrative expenses decreased 25% to $351 million, while research and development costs declined 20% to $1.12 billion.

Moderna continues to project revenue of $1.5 billion to $2.5 billion for the full year 2025, including roughly $200 million in the first half due to seasonal demand for respiratory products. The Street is looking for sales of $2.37 billion. In the previous year, total revenue fell to $3.24 billion from $6.85 billion in the year prior.

"In 2025, we remain focused on driving sales, delivering up to 10 product approvals through 2027, and expanding cost efficiencies across our business," according to Bancel. "By the end of 2025, we aim to remove nearly $1 billion in costs."

Cost of sales is pegged at about $1.2 billion for the ongoing year. The drugmaker also anticipates research and development expenses of around $4.1 billion and selling, general and administrative costs of roughly $1.1 billion for 2025.