Moderna’s fourth-quarter earnings report showed revenue of $966 million, down substantially from last year’s $2.81 billion. The biotech is struggling to find its footing in the post-pandemic market, but CEO Stéphane Bancel says the company will turn around its commercial performance and achieve long-term growth.
The company’s revenue decline was largely due to increased competition and pricing pressure in the US, as well as a decrease in vaccination rates. Moderna is expecting $1.5 billion to $2.5 billion in total revenue for 2025, representing a 33% year-on-year decline.
Despite this, Moderna’s COVID-19 franchise continues to be a significant contributor to its business, with sales of $923 million in the fourth quarter, down 66% from last year. The company has also seen success with its recent approval of an RSV vaccine.
However, Moderna is facing challenges on multiple fronts. It plans to lay off around 50 employees on its digital team, which accounts for about 10% of its roles within two digital departments. Additionally, the FDA has placed a clinical hold on a Phase III study for its norovirus vaccine candidate due to an adverse event.
Despite these setbacks, CEO Bancel is optimistic about Moderna’s future prospects. He noted that the company has reduced costs by 27% compared to last year and expects to sustain this cost-cutting effort in 2025. The company also plans to deliver up to 10 product approvals through 2027 and is confident in its pipeline.
However, some analysts are skeptical about Moderna’s prospects, citing increased competition and pricing pressure in the US market. Jefferies analyst notes that Moderna’s RSV vaccine sales were $15 million in the fourth quarter, far below the expected $23 million.
Source: https://www.biospace.com/business/moderna-reports-higher-than-expected-losses-while-anticipating-layoffs