Shares of Moderna experienced a decline in value on Thursday following the announcement that the company would be reducing its research and development spending and extending its timeline for breaking even financially. Moderna disclosed plans to cut research and development expenses from $20 billion to $16 billion for the years 2025 to 2028, representing a 20% reduction. The company aims to achieve this through cost-saving measures and streamlining its portfolio, resulting in an annual spending decrease of around $1.1 billion starting in 2027.

Moderna, known for its Spikevax COVID-19 vaccine and recently approved RSV vaccine, unveiled projections for its 2025 revenue, which fell short of Wall Street expectations. The company is also working on a combined flu/COVID vaccine and an RSV vaccine for high-risk young adults, expecting to seek regulatory approval for these products in 2024.

In a revision to its financial outlook, Moderna now anticipates reaching a break-even point in 2028, a delay from its previous forecast of achieving this milestone in 2026. For the year 2025, the company foresees revenue in the range of $2.5 billion to $3.5 billion, whereas analysts had predicted a higher figure of $3.87 billion based on FactSet data.

Moderna Inc., headquartered in Cambridge, Massachusetts, saw its stock price drop by 12% to $69.61 before the market opening on Thursday. This decline comes after a 20% decrease since the beginning of the year when the stock was trading around $100 in early 2024.