In this article, Moderna announced a reduction in its 2025 sales guidance by approximately $1 billion due to potential challenges expected later in the year. The biotech company is focusing on cost-cutting measures and expanding its product portfolio.
Moderna now anticipates 2025 revenue to range between $1.5 billion and $2.5 billion, with the majority of sales expected in the second half of the year. Most of the revenue is projected to come from Moderna’s Covid vaccine and a newly launched vaccine for respiratory syncytial virus.
This revised guidance is a decrease from the previous forecast range of $2.5 billion to $3.5 billion issued in September. The company initially aimed to achieve break-even on an operating cash basis in 2028, delayed from the previous target of 2026, with an expected revenue of $6 billion.
Following the announcement, Moderna’s shares closed nearly 17% lower on Monday. Other vaccine stocks, including Novavax and BioNTech, also experienced declines, with both ending more than 7% lower.
Moderna’s CFO, Jamey Mock, highlighted uncertainties for 2025, including potential headwinds such as increased competition in the Covid market. He mentioned a decline in Moderna’s market share for Covid shots in the U.S. retail market and the impact of a new agreement between Sanofi and Novavax on vaccine competitiveness.
Mock also pointed out falling vaccination rates as another factor affecting sales, along with uncertainties related to manufacturing contracts with certain countries and recommendations for RSV revaccination by advisors to the Centers for Disease Control and Prevention.
Despite these challenges, Moderna plans to reduce cash cost expenses for 2025 by $1 billion and aims for additional cost reductions of $500 million in 2026. The company remains focused on diversifying its portfolio and investing in new products.
Moderna’s revenue from its two shots met expectations for 2024, reaching around $3 billion to $3.1 billion. The company’s updated Covid shot, approved earlier in the U.S. than its previous version in 2023, contributed to this revenue.
Looking ahead, Moderna plans to introduce 10 new products over the next three years, including a combination shot for Covid and the flu, as well as a “next-generation” Covid vaccine. The company anticipates up to three approvals in 2025 alone, emphasizing its commitment to innovation and its messenger RNA platform.
