Moderna’s Revenue Forecast Takes a Hit
The biotech company Moderna has revised its 2025 sales forecast downward by $1 billion, citing sluggish demand for its COVID-19 vaccines and a slower-than-expected adoption of its respiratory syncytial virus (RSV) shot. This news sent the company’s shares plummeting by over 18% in premarket trading.
Waning Demand for COVID Vaccines
As the pandemic subsides, the demand for COVID-19 vaccines has been steadily decreasing. This decline has significantly impacted Moderna’s revenue, forcing the company to reassess its financial projections. Furthermore, the adoption of its RSV shot, the company’s second approved product, has been slower than anticipated.
Cost-Cutting Measures
To mitigate the impact of these challenges, Moderna plans to reduce its 2025 cash costs by $1 billion. An additional $500 million in cost savings is expected in 2026. The company aims to end 2025 with approximately $6 billion in cash and investments.
New Products to Drive Growth
Moderna is pinning its hopes on new products to accelerate growth. The company has submitted an application to the U.S. FDA for approval of its combination vaccine, which protects against both COVID-19 and influenza. The FDA is expected to make a decision on the application by May. Additionally, Moderna plans to report data from a trial of its seasonal flu shot this year, pending sufficient case accrual.
Updates on Other Trials
An independent group has informed Moderna that a late-stage trial of its cytomegalovirus (CMV) vaccine has not met the criteria for early efficacy. However, the study will continue, and the company expects to report data from the trial this year. CMV is a common infection that can cause birth defects.
Upcoming Earnings Report
Moderna will report its fourth-quarter results on February 14. The company’s shares have lost 58% of their value over the past year, and investors will be closely watching the earnings report for signs of a turnaround.
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