Moderna’s Research and Development Spending Cut and Revenue Forecast
Washington: Moderna’s shares fell early Thursday after the vaccine developer announced a reduction in research and development spending and a delayed timeline for breaking even. The company also forecasted a 2025 revenue range that fell short of Wall Street expectations.
Moderna plans to reduce its research and development expenses by approximately 20% from $20 billion to $16 billion between 2025 and 2028. The company expects a $1.1 billion annual reduction starting in 2027 through cost cuts and portfolio prioritization.
Moderna developed the Spikevax COVID-19 vaccine and has regulators approved it for RSV or respiratory syncytial virus. The company also has a combination flu/COVID vaccine and an RSV vaccine for high-risk younger adults, which it expects to submit to regulators in 2024.
The company now expects to break even in 2028, compared to its previous forecast of 2026. For 2025, Moderna expects revenue ranging from $2.5 billion to $3.5 billion, with analysts forecasting $3.87 billion.
Market Impact: Moderna’s shares were down 12% to $69.61 before markets opened Thursday. The price has already dropped 20% so far this year, starting 2024 around $100.
Published on Sep 13, 2024 at 12:23 PM IST
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Reference : https://health.economictimes.indiatimes.com/news/pharma/pharma-industry/moderna-lays-out-plan-to-slice-research-and-development-spending/113315361
