Moderna Outlines Post-Covid Roadmap, Cuts Research Budget, Forecasts 2025 Sales Below Expectations

Thursday, Moderna Inc MRNA unveiled key updates at its annual R&D Day, spotlighting its mRNA-based pipeline and revised financial plans.

CEO Stéphane Bancel emphasized the company’s success in respiratory vaccines, stating that Moderna now has five respiratory vaccines with positive Phase 3 results and expects three approvals this year. The company is also focusing on five non-respiratory products, aiming for approvals by 2027.

Also Read: Moderna’s Investigational Mpox Vaccine More Effective Than Current Approved Shot, Animal Study Shows.

Faced with commercial challenges, Moderna is adopting a more selective approach to R&D investments. The company anticipates maintaining substantial R&D investment, especially in oncology and rare diseases, while pacing other expenditures.

The company plans to reduce annual R&D spending by $1.1 billion by 2027, enabling a focus on ten prioritized products.

The company expects R&D expenses to fall from $4.8 billion in 2024E to $3.6 billion-$3.8 billion in 2027.

This strategy, expanding its portfolio into oncology and rare diseases, positions Moderna to deliver ten product approvals within the next three years.

Financially, Moderna expects its respiratory franchise to become profitable by 2024 and projects revenues of $2.5 to $3.5 billion by 2025 versus consensus of $3.74 billion. For 2026-2028, the company expects a compounded annual growth rate of more than 25%, driven by new product launches.

Moderna also expects its year-end cash and investments for 2025 to reach approximately $6 billion.

The company aims to break even on an operating cash cost basis—excluding stock-based compensation, depreciation, and amortization—by 2028, targeting $6 billion in revenue.

Moderna has assured stakeholders that it possesses sufficient capital to fund its operations and reach this break-even point without raising additional equity.

Price Action: MRNA stock is down 17.60% at $65.54 at the last check Thursday.

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