On Tuesday, March 26, 2024, Moderna Inc. is headquartered in Cambridge, Massachusetts, United States.
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modern On Monday, the biotech cut its 2025 sales guidance by about $1 billion amid some potential headwinds later this year as it continues to cut costs and expand its product portfolio.
Moderna currently expects 2025 revenue to be between $1.5 billion and $2.5 billion, with the majority of that coming in the second half of the year. Most of those sales will come from Moderna’s Covid vaccine and newly launched vaccines respiratory syncytial virusaccording to a press release.
This guidance is lower than before forecast The September bond issuance ranged from $2.5 billion to $3.5 billion. At the time, the company said it expected Achieve breakeven based on operating cash By 2028 (pushed back from 2026), revenue will reach $6 billion.
Moderna shares plunged 18% in pre-market trading on Monday. Other vaccine stocks also fell, with Novavax down 6% before the open, BioNTech down 3% and Pfizer down slightly.
“As we move into 2025, we are planning for some uncertainties,” Moderna Chief Financial Officer Jamey Mock told CNBC. “As of now, we plan to treat them as headwinds. They could be tailwinds, but now we see them as headwinds.”
Mock pointed to four factors that could impact sales, including increased competition in the coronavirus market. He said Moderna’s share of the U.S. retail COVID-19 vaccine market fell from 48% in 2023 to 40% at the end of 2024, and the company was preparing for another decline this year.
He pointed out Sanofi will co-commercialize NovavaxThe vaccine will be available globally under a new deal that could make it more competitive.
Mock said the second factor is declining vaccination rates, which overall will be down about 7% in the U.S. retail market in the fall of 2024 compared with the same period in 2023. The final two factors are the timing of manufacturing contracts with a small number of countries and the uncertainty that consultants from the Centers for Disease Control and Prevention will recommend RSV revaccination.
But Mock noted that the company expects cash cost expenses to decrease by $1 billion in 2025, and plans to further reduce it by $500 million in 2026.
“We’re taking appropriate costs to preserve our cash,” Mock said. “We are excited to invest and diversify our portfolio.”
The news comes as Moderna charts a path forward after rapidly declining demand for its Covid vaccine, which was the company’s only commercial product until its RSV vaccine hit the market last year. It also precedes Moderna’s presentation at the annual show JP Morgan Healthcare Conferenceis one of the largest gatherings of healthcare executives in the world and a hotbed of deal activity in the industry.
Moderna’s revenue from the two-shot shot met its 2024 forecast of about $3 billion to $3.1 billion. In November, the company said its updated coronavirus vaccine beneficiaries The vaccine was approved in the U.S. three weeks earlier than the last shot approved in 2023.
Still, those sales were down significantly from last year. $6.7 billion Moderna’s Covid vaccine is pre-ordered in 2023 and will generate $18 billion in revenue in 2022, as fewer people roll up their sleeves for a refreshed vaccine.
Moderna plans to bolster its portfolio with 10 new product approvals over the next three years, including a combination vaccine against COVID-19 and influenza and a “next-generation” COVID-19 vaccine. The company said on Monday that three approvals were possible in 2025 alone.
The company is betting on a pipeline built around its messenger RNA platform, the technology used in its Covid vaccine and RSV vaccine.
