In the early hours of trading on Monday, shares of Moderna experienced a significant decline following the company’s announcement of an anticipated larger-than-expected drop in sales for the upcoming year.
Moderna has projected that its revenue for 2025 will be between $1.5 billion and $2.5 billion, a notable decrease from the approximately $3.1 billion it generated last year. Analysts, on average, had forecasted revenue of around $2.92 billion for this same timeframe, according to data compiled by FactSet.
In addition to the revenue forecast, Moderna revealed that it would be accelerating and expanding its efforts to cut costs. The company aims to reduce cash expenses by $1 billion in the new year, with further reductions planned for 2026.
Last year, a significant portion of Moderna’s income came from its COVID-19 vaccine, Spikevax, which alone contributed over $3 billion in sales. The firm also received regulatory approval for its vaccine targeting respiratory syncytial virus (RSV), although sales from this were reported to be minimal.
The disclosure occurred just prior to the company’s scheduled presentation at the annual J.P. Morgan Healthcare Conference in San Francisco. Moderna is set to present its fourth-quarter earnings on February 14.
Notably, the company has seen a dramatic drop in earnings since the peak of the pandemic, when it reported annual sales exceeding $19 billion, which was attributed to the widespread administration of vaccinations.
By mid-morning, shares of Moderna, based in Cambridge, Massachusetts, fell significantly, declining 19% or $8.18 to a price of $34.07.
