Moderna (MRNA, Financial), a prominent U.S. vaccine manufacturer, has significantly reduced its revenue forecast for the year, citing decreasing demand for its key products. The company's stock plummeted by 20% in early U.S. trading. Moderna now anticipates 2025 revenues to be between $1.5 billion and $2.5 billion, a notable drop from the previous estimate of $2.5 billion to $3.5 billion. Last year's sales were about $3 billion, already at the lower end of the earlier forecast.
In response to these challenges, Moderna is accelerating its cost-cutting measures, aiming to reduce $1 billion by 2025 and an additional $500 million by 2026. CEO Jamey Mock highlighted several adverse factors, including intensified competition in the COVID-19 vaccine market, potential delays in facility construction in other countries, and a continuous decline in vaccination rates. Data from the company shows a 7% decrease in COVID-19 vaccination rates in the retail market last fall compared to the previous year.
With the post-pandemic demand for COVID-19 vaccines waning, Moderna has been adjusting its financial goals. Although its respiratory syncytial virus (RSV) vaccine was anticipated to be a promising product, it has not gained significant traction. Additionally, the company faces uncertainties from the potential policies of a future Trump administration, particularly with vaccine skeptic Robert F. Kennedy Jr. as a potential health secretary, which could impact the biotech sector.
Investors are eager for more product approvals from Moderna. The company expects to release late-stage clinical trial results for its cytomegalovirus (CMV) vaccine by the end of 2024. However, an independent expert panel recently suggested that the study continue as planned, as it did not meet early efficacy standards. Final efficacy data is expected later this year.
