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 portfolio.
The revised revenue forecast for 2025 is now between $1.5 billion and $2.5 billion, with a significant portion expected in the second half of the year. Most of the sales are anticipated to come from Moderna’s Covid vaccine and a newly launched vaccine for respiratory syncytial virus.
This updated guidance is a decrease from the previous range of $2.5 billion to $3.5 billion provided 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 their shares 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 decrease in Moderna’s market share for Covid shots in the U.S. retail market and the impact of a new agreement between Sanofi and Novavax on vaccine competitiveness.
Mock also pointed out falling vaccination rates as another factor affecting sales, along with uncertainties related to manufacturing contracts 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 strategic decisions come amidst changing market dynamics, including declining demand for its Covid vaccine and the recent launch of its RSV shot. The company is set to present at the annual JPMorgan Healthcare Conference, a significant event for health-care executives and industry deals.
Revenue from Moderna’s vaccines met expectations for 2024, reaching around $3 billion to $3.1 billion. The company’s updated Covid shot, approved earlier in the U.S. than its predecessor in 2023, contributed to this performance.
Looking ahead, Moderna plans to introduce 10 new products over the next three years, including a combination shot for Covid and the flu, as well as a next-generation Covid vaccine. The company anticipates up to three approvals in 2025 alone, focusing on its messenger RNA platform technology used in its vaccines.
