Moderna cuts 2025 revenue guidance, stock plunges

Investing.com -- Moderna shares plunged by more than 17% premarket Monday after the company lowered its 2025 revenue forecast.

The biotech company revised its expected revenue range to $1.5 billion to $2.5 billion, a sharp decline from its prior forecast of $2.5 billion to $3.5 billion.

The new guidance range also falls below the market consensus of around $2.95 billion.

The company reported achieving $3.0 to $3.1 billion in product sales for 2024, with $1.7 billion from U.S. sales and the remainder from international markets.

However, Moderna’s outlook for 2025 is significantly weaker, driven by expected declines in its vaccine sales, given weak demand for COVID-19 vaccines.

Despite the lowered forecast, Moderna (NASDAQ: MRNA) remains optimistic about its pipeline of mRNA-based medicines, including several new vaccines and cancer therapies set to advance in the coming years.

Moderna’s Chief Executive Officer, Stéphane Bancel, also highlighted the company’s cost-cutting initiatives, projecting a $1 billion reduction in operating costs for 2025, with an additional $500 million in savings expected for 2026.

The cost-cutting initiatives include a reduction in cost of sales, research and development, and selling, general&administrative expenses.

"In 2024, we achieved $3.0 - 3.1 billion in product sales, approval of our RSV vaccine and continued to adapt our COVID-19 business for the endemic setting. At the same time, we reduced our cash operating cost by over 25 percent compared to 2023 and aim to reduce 2025 cash costs by $1 billion with a plan for an additional $500 million cost savings in 2026," said Stéphane Bancel, Chief Executive Officer of Moderna.

"We remain focused on our three strategic priorities: driving sales growth, delivering up to 10 product approvals over the next three years, and reducing costs across our business."

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