Moderna Inc. has revised its 2025 sales projections downward by $1 billion, citing sluggish adoption of its respiratory syncytial virus (RSV) vaccine and declining demand for COVID-19 vaccines. The announcement, made on January 13, sent Moderna’s shares tumbling by over 18% in premarket trading.
The biotechnology company now anticipates annual revenue of $1.5 billion to $2.5 billion, primarily in the latter half of the year. This marks a significant drop from its earlier forecast of $2.5 billion to $3.5 billion and falls short of analysts’ expectations of $2.95 billion, according to LSEG data.
Post-Pandemic Challenges Impacting Demand
Following the COVID-19 pandemic, demand for Moderna’s COVID vaccine has diminished sharply. Additionally, the slower-than-expected adoption of its RSV vaccine—only the second product to receive approval from the company—has further pressured sales. In response, Moderna has initiated cost-cutting measures to stabilize its financial position.
Chief Executive Officer Stéphane Bancel revealed plans to reduce cash expenses by $1 billion in 2025, with an additional $500 million in cost reductions targeted for 2026. Despite the challenges, Moderna aims to conclude 2025 with approximately $6 billion in cash and investments.
Betting on New Products for Growth
To reinvigorate growth, Moderna is pivoting to new product development. The company has submitted an application to the U.S. Food and Drug Administration (FDA) seeking approval for a combination vaccine designed to protect against COVID-19 and influenza.
Moderna also disclosed that the FDA is expected to decide by May on the approval of its next-generation COVID-19 vaccine. Furthermore, data from a trial of its seasonal flu vaccine is anticipated this year, provided enough cases are recorded during the first flu season. If not, the study will extend into a second season.
Mixed Progress in Clinical Trials
An independent monitoring group has advised Moderna to continue a late-stage trial for its cytomegalovirus (CMV) vaccine after the study failed to meet early efficacy benchmarks. The CMV vaccine, which targets an infection often linked to birth defects, is a key component of the company’s pipeline. Moderna now expects trial results for the vaccine to be available later this year.
Market Reaction
Investors reacted swiftly to the revised forecast and broader market concerns. Moderna shares dropped to $34.59 in premarket trading, deepening the company’s losses. Moderna’s stock value has already plummeted by 58% in the past year.
Looking ahead, Moderna plans to release its fourth-quarter earnings report on February 14, offering further insight into the company’s strategy to navigate its ongoing challenges.
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