Washington: Shares of Moderna tumbled early on Thursday after the vaccine developer said it was cutting research and development spending and pushing back its timeline to break even. The company also forecast a 2025 revenue range that fell short of Wall Street expectations.
Moderna said it plans to cut research and development spending by about 20 percent, from $20 billion to $16 billion, from 2025 to 2028. It projects annual cost reductions of about $1.1 billion starting in 2027 through spending cuts and prioritizing its portfolio.
Moderna developed the Spikevax COVID-19 vaccine, and regulators this year approved its vaccine for RSV, or respiratory syncytial virus. The company also has a combination flu/COVID vaccine and an RSV vaccine for high-risk young adults that it expects to submit to regulators in 2024.
The company also said on Thursday that it now expects to break even in 2028. He predicted last November that this would happen in 2026.
For 2025, Moderna said it expects revenue of $2.5 billion to $3.5 billion.
Analysts forecast $3.87 billion, according to FactSet.
Shares of Cambridge, Massachusetts-based Moderna Inc. fell 12 percent to $69.61 before markets opened Thursday.
That price has fallen 20 percent so far this year after starting at $100 around 2024. (AP) ZH ZH
