In this article, Moderna announced a reduction in its 2025 sales guidance by approximately $1 billion due to potential challenges expected later in the year. The biotech company is focusing on cost-cutting measures and expanding its product range.
Moderna now anticipates 2025 revenue to fall between $1.5 billion and $2.5 billion, with the majority of sales projected for the second half of the year. The main revenue sources are expected to be Moderna’s Covid vaccine and a newly launched vaccine for respiratory syncytial virus.
This revised guidance is a decrease from the previous forecast range of $2.5 billion to $3.5 billion issued in September. Moderna now aims to achieve break-even on an operating cash basis in 2028, delayed from the initial target of 2026, with a revenue target of $6 billion.
Following the announcement, Moderna’s stock closed nearly 17% lower on Monday. Other vaccine companies such as Novavax and BioNTech also experienced declines, with both ending more than 7% lower.
Moderna’s CFO, Jamey Mock, highlighted uncertainties for 2025, including potential headwinds such as increased competition in the Covid market. He mentioned a decline in Moderna’s market share for Covid shots and the impact of a new agreement between Sanofi and Novavax on vaccine competitiveness.
Mock also pointed out falling vaccination rates and uncertainties related to manufacturing contracts with various countries and recommendations for RSV revaccination by the Centers for Disease Control and Prevention advisors.
Despite these challenges, Moderna plans to reduce cash cost expenses by $1 billion in 2025 and implement further cost reductions of $500 million in 2026. The company aims to diversify its portfolio and invest strategically.
Moderna’s revenue from its two shots met expectations for 2024, reaching around $3 billion to $3.1 billion. The company plans to introduce 10 new products over the next three years, including a combination shot for Covid and the flu, and a next-generation Covid shot.
Moderna’s strategy revolves around its messenger RNA platform, the technology used in its Covid vaccine and RSV shot. The company is looking ahead to its participation in the annual JPMorgan Healthcare Conference, a significant event for health-care executives and industry deals.
