Moderna Expects Lower Annual Sales, Expands Cost-Cutting Initiatives

Moderna Inc. MRNA stock plunged on Monday after the company announced business updates and progress across its pipeline. Moderna says it enters 2025 with a focus on a prioritized portfolio addressing respiratory viruses, rare diseases, oncology, and latent and other viruses.

The company will present at the 43rd Annual J.P. Morgan Healthcare Conference.

In September, Moderna unveiled key updates at its annual R&D Day by reducing 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.

Also Read: Moderna Remains Confident Despite Political Concerns Over Vaccine Safety and HHS Nomination

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

In fiscal year 2024, Moderna achieved preliminary product sales of approximately $3 billion-3.1 billion, comprising $1.7 billion in the U.S. and $1.3 to 1.4 billion in the rest of the World.

This includes more than $3 billion in Spikevax sales and minimal sales from mRESVIA, its RSV Vaccine. Cash, cash equivalents, and investments at year-end 2024 were approximately $9.5 billion.

Moderna is accelerating and expanding its previous cost efficiency and prioritization programs and now projects cash cost reductions of $1.0 billion in 2025.

The company expects an additional $0.5 billion in potential cash cost savings in 2026. In September, the company announced its plans to reduce annual R&D spending by $1.1 billion by 2027, enabling a focus on ten prioritized products.

Moderna now projects $1.5 billion to 2.5 billion in revenue in 2025 compared to the consensus of $2.95 billion, mostly in the second half of the year, primarily due to Spikevax and mRESVIA vaccine sales. Earlier, Moderna projected revenues of $2.5 to $3.5 billion by 2025.

The company expects to end 2025 with approximately $6.0 billion in cash and investments.

Moderna reported third-quarter revenue of $1.83 billion, compared with $1.83 billion a year earlier, beating the consensus of $1.25 billion.

The company attributed the growth to higher sales in the U.S. market following the earlier launch of the updated COVID-19 vaccine.

Price Action: At last check on Monday, MRNA stock was down 19.20% to $34.13.

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