Moderna Inc.'s headquarters. In Cambridge, Massachusetts, United States, on Tuesday, March 26, 2024.
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accident The biotechnology company on Monday lowered its 2025 sales guidance by about $1 billion due to some potential headwinds later this year, as the biotech company continues to cut costs and expand its portfolio.
Moderna now expects 2025 revenue to range between $1.5 billion and $2.5 billion, most of which will come in the second half of the year. The majority of these sales will come from Moderna's Covid vaccine and the newly launched vaccine Respiratory syncytial virusAccording to a statement.
Guidance descended from its predecessor Climate prediction Ranging from $2.5 billion to $3.5 billion issued in September. At the time, the company said it expected this Break-even is based on operating cash In 2028 – postponed from 2026 – with revenue of $6 billion.
Moderna shares fell 18% in pre-market trading Monday.
“As we head into 2025, there are a few uncertainties that we're planning for,” Moderna CFO Jamie Mock told CNBC. “As of this time period, we're planning for it to be a headwind. It could be a headwind, but right now we're seeing it as a headwind.”
Mock pointed to four factors that could impact sales, including increased competition in the Covid market. Moderna's share of the U.S. retail market for Covid injections fell to 40% at the end of 2024 from 48% in 2023, and the company is preparing for another decline this year, he said.
He pointed out Sanofi They will be jointly marketed NovavaxCovid vaccine worldwide under a new agreement, which could make this vaccine more competitive.
The second factor is lower vaccination rates, which are down about 7% overall in the U.S. retail market in the fall of 2024 compared to the same time in 2023, Mock said. The final two factors are timing around manufacturing contracts with a few countries, and uncertainty. About what CDC advisors will recommend for RSV revaccination.
But Mock noted that the company expects to reduce 2025 cash cost expenses by $1 billion, with plans for additional 2026 cost reductions of $500 million.
“We're taking on the right amount of cost to conserve our money,” Mock said. “We are excited to invest and diversify our portfolio.”
The announcement comes as Moderna charts a way forward after a rapid decline in demand for its Covid vaccine, its only commercially available product until the RSV shot entered the market last year. It also comes before Moderna's presentation at the annual conference JP Morgan Healthcare Conferenceone of the largest gatherings of healthcare executives in the world and a hotbed of deal activity in the industry.
Revenue from Moderna's two doses is in line with its 2024 forecast, at about $3 billion to $3.1 billion. In November, the company announced its updated Covid shot He benefited From receiving approval in the United States three weeks before the previous iteration of the vaccine is due in 2023.
However, these sales represent a sharp decline from $6.7 billion That the Moderna Covid vaccine was held back in 2023 and the $18 billion it made in 2022, as fewer people rolled up their sleeves to get updated vaccines.
Moderna plans to bolster its portfolio with 10 new product approvals over the next three years, including a combination shot targeting COVID and influenza and a “next generation” COVID shot. The company said Monday it could see three approvals in 2025 alone.
The company is betting on a pipeline built around its messenger RNA platform, the technology used in its Covid vaccine and RSV shot.
