Moderna, a biotech firm behind COVID-19 vaccines, cut its revenue forecast for 2025 by $1 billion due to weak demand for its newest vaccine and slow sales of its existing COVID-19 vaccine. The company now expects $1.5 billion to $2 billion in revenue.
CEO Stéphane Bancel attributed the decline to a slower respiratory virus season, which has seen decreased demand for vaccines targeting children and elderly adults. Moderna’s stock dropped over 20% on Monday to $33.05 per share, marking a significant decrease from its peak of nearly $450 per share in 2021.
The company plans to continue cost-cutting strategies in 2025, aiming to reduce cash costs by $1 billion. However, analysts warn that the biotech firm may face further challenges due to weak demand and delayed pipeline products.
Analysts at Leerink Partners have expressed concerns about Moderna’s growth prospects, citing headwinds from reduced sales guidance, unclear plans for a COVID-19/flu combination vaccine, and missing interim results on CMV efficacy. These factors put the company’s position in the S&P500 at risk, making its return to profitability increasingly uncertain.
Source: https://finance.yahoo.com/news/moderna-cuts-sales-forecast-on-weaker-vaccine-demand-162509497.html