(Bloomberg) -- Moderna Inc. reported a narrower first-quarter loss than Wall Street had expected, as the biotech giant’s cost-cutting helped offset a steep decline in its Covid business.

The Cambridge, Massachusetts-based company reported a loss of $3.07 a share, according to a statement. Analysts were expecting a quarterly loss of $3.58 a share. 

Moderna shares rose 0.8% as of 8:21 a.m. in New York ahead of regular trading. They are up 12% so far this year as of Wednesday’s close.

The company cut costs in various parts of its businesses. Research and development expenses declined 6% in the quarter due largely to the absence of upfront collaboration payments, the company said. Moderna has also reduced its manufacturing footprint as the vaccine maker prepares for a post-pandemic era. It also said it cut use of consultants. 

Michael Yee, an analyst at Jefferies, called it “a good sign if they can continue to manage expenses, which has been a big sticking point for investors.”

Quarterly revenues of $167 million topped analysts’ expectations of about $100 million — but dropped sharply from the $1.9 billion in sales posted during the same period a year ago when Covid vaccine sales were much stronger.  

Moderna reaffirmed its expectations for about $4 billion in sales this year. The company reported total revenue of about $6.8 billion last year. 

The quarterly results underscore Moderna’s desire to save money as the pandemic fades and fewer people are getting Covid shots. Most Covid vaccine sales are expected in the second half of the year, before the cold weather virus season. 

“Uncertainty remains around the near-term outlook, which is largely tied to COVID and could potentially limit near-term outperformance,” Jessica Fye, an analyst at JP Morgan, said in a note Thursday.

This month, Moderna is expected to get US approval for its second product, a vaccine for respiratory syncytial virus, or RSV — which it hopes will help fill the hole left by its shrinking Covid business. The company will compete against two larger and more established competitors, Pfizer Inc. and GSK Plc, whose RSV shots hit the market last year. 

Analysts project Moderna’s RSV vaccine will generate about $356 million in revenue this year.

Moderna said Thursday it had agreed to end a gene editing collaboration with biotech company Metagenomi as it “continues to strategically prioritize its research and development investments.”

“We’re looking very carefully at all investments,” Moderna Chief Executive Officer Stéphane Bancel said Thursday on Bloomberg Television.

The drugmaker aims to develop new uses for its mRNA technology to fight flu, cancer and other ailments. But management faces pressure from investors over its large research budget, which it expects will be about $4.5 billion this year. The company has projected it will break even in 2026. 

(Updates with shares and analyst and CEO comments starting in third paragraph.)

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