Following the biotechnology company’s negative sales projection and announcement that it anticipates spending over $3 billion in cash in 2025, Moderna Inc.’s shares were down in early trade on Monday.
Additionally, the business announced that it was speeding up and broadening its cost-cutting strategy, anticipating savings of $1 billion this year and an additional $500 million the next year.
Premarket trading saw a 16.7% decline in the stock (MRNA), setting it up to begin at some of the lowest levels since April 2020.
Spikevax, the company’s COVID-19 vaccine, accounted for “more than” of its $3.0 billion to $3.1 billion in product sales in 2024, while mResvia, its respiratory syncytial virus (RSV) vaccine, contributed “minimal” sales.
This is less than the FactSet sales average of $3.29 billion and contrasts with prior guidance of $3.0 billion to $3.5 billion.
The company anticipates sales of $1.5 billion to $2.5 billion for 2025, which would represent a 34% decrease at the midpoint of the projection. As of right now, the FactSet sales consensus is $2.92 billion.
According to Moderna, sales of Spikevax and mResvia will account for the majority of income in the second half of the year.
Additionally, the business stated that it anticipates having roughly $6 billion in cash and investments by the end of 2025, a decrease from the $9.5 billion in cash, cash equivalents, and investments at the end of 2024.
Moderna announced separately that it has submitted applications for licensure of both its flu-COVID combo vaccination and its next-generation COVID-19 vaccine.
The business has applied for clearance of mResvia for high-risk adults aged 18 to 59 after being approved in 2024 for mResvia for persons aged 60 and over.
Up until Friday, the stock had fallen 60.1% over the previous 12 months, while the S&P 500 index SPX had risen 21.8% and the iShares Biotechnology ETF IBB had fallen 3.2%.
