Moderna Therapeutics’ stock price dropped by more than 20% on Monday morning after the biotech company reduced its revenue guidance for 2025 to $1.5 billion and $2.5 billion, down from a previous estimate of $2.5 billion and $3.5 billion.
The company is accelerating cost-cutting plans to reduce expenses by $1 billion this year, following disappointing sales of its COVID-19 and respiratory syncytial virus vaccines. CEO Stéphane Bancel acknowledged that the company was too optimistic with its RSV forecasting, which has led to reduced revenue expectations.
Moderna’s struggles in 2024 were attributed to a decrease in demand for both COVID-19 and RSV shots compared to 2023. According to analysts, COVID vaccinations involving Moderna, Pfizer, and Novavax products dropped by 8% at the end of 2024.
The company’s pipeline remains promising, with several vaccines in late-stage testing, including one for cytomegalovirus, which has not yet met an early bar for success. However, investors remain cautious about Moderna’s future success, citing reduced revenue expectations and a lack of clear guidance on the company’s upcoming vaccine approvals.
Key dates to watch include:
* May: Decision from the FDA on Moderna’s next-generation COVID vaccine
* Later this year: Final efficacy data for Moderna’s norovirus and seasonal flu vaccines
* Late-stage testing: Vaccine for cytomegalovirus
Source: https://www.biopharmadive.com/news/moderna-guidance-2025-jpm-shares-fall/737150