Vaccine Maker’s Shares Plummet Amidst Revenue Warning
Moderna’s stock took a significant hit on Monday as the biotech company forecasted a sharper-than-anticipated decline in sales for the upcoming year. The company’s revenue projection for 2025, ranging from $1.5 billion to $2.5 billion, fell short of analysts’ expectations of $2.92 billion.
A Shift in Focus
The news comes as Moderna is shifting its focus from its COVID-19 vaccine, Spikevax, which generated over $3 billion in sales last year. While the company’s RSV vaccine received regulatory approval, it contributed minimally to its revenue. Moderna is now accelerating and expanding its cost-cutting plan, aiming to reduce cash costs by $1 billion in 2025, with further cuts planned for 2026.
A New Era for Moderna
This announcement marks a significant departure from Moderna’s heyday during the pandemic, when it raked in over $19 billion in annual sales. The company will provide more insight into its fourth-quarter results on February 14. Ahead of its presentation at the J.P. Morgan Healthcare Conference in San Francisco, Moderna’s shares plummeted 19%, or $8.18, to $34.07 in morning trading.
A Challenging Road Ahead
As Moderna navigates this new landscape, investors are left wondering what the future holds for the company. With its reliance on Spikevax waning, Moderna must find new ways to drive revenue growth. The company’s cost-cutting efforts are a step in the right direction, but only time will tell if they will be enough to offset the decline in sales.
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