Moderna Outlines Post-Covid Roadmap, Cuts Research Budget, Forecasts 2025 Sales Below Expectations
Portfolio Pulse from Vandana Singh
Moderna Inc (NASDAQ:MRNA) has outlined its post-COVID strategy, focusing on mRNA-based vaccines and reducing its R&D budget. The company plans to cut R&D spending by $1.1 billion by 2027, focusing on oncology and rare diseases. Moderna projects 2025 sales below expectations, with a revenue forecast of $2.5 to $3.5 billion, compared to the consensus of $3.74 billion. The stock is down 17.60% following the announcement.
September 12, 2024 | 2:05 pm
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Moderna has announced a reduction in its R&D budget by $1.1 billion by 2027, focusing on oncology and rare diseases. The company projects 2025 sales below expectations, with a revenue forecast of $2.5 to $3.5 billion, compared to the consensus of $3.74 billion. This has led to a 17.60% drop in stock price.
The announcement of reduced R&D spending and lower-than-expected sales forecasts for 2025 has negatively impacted investor sentiment, leading to a significant drop in Moderna's stock price. The focus on oncology and rare diseases may not immediately offset the concerns over reduced R&D investment and sales projections.
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IMPORTANCE 90
RELEVANCE 100