Moderna, headquartered in Cambridge, Massachusetts, announced plans to cut around $1.1 billion in expenses by 2027. They aim to win approvals for 10 new products within this timeframe, pivoting from the decline of their Covid business. The company’s research and development (R&D) spending will be scaled back to $3.6-$3.8 billion by 2027, down from an expected $4.8 billion this year. Some projects will be paused or discontinued, including late-stage trials for latent viruses and an RSV vaccine for infants under 2 years old.
Despite these changes, Moderna’s shares dropped by over 14% in premarket trading. Analysts expressed concerns about the company’s financial health and delayed profitability until 2028. However, Moderna reported positive late-stage trial results for its RSV vaccine for high-risk adults aged 18-59 and an experimental flu shot for adults 65 and older. The company plans to file for approval of these vaccines this year.
Moderna also has five other respiratory shots with successful phase three results and expects to submit three for approval this year, including a combined Covid and flu shot. Additionally, its pipeline includes five non-respiratory products targeting cancer, latent viruses, and rare diseases, potentially approved by 2027. They forecast 2025 revenues to fall between $2.5 billion and $3.5 billion and expect over 25% annual growth from 2026 to 2028.
CEO Stephane Bancel highlighted that Moderna’s rate of success in developing drugs from phase one to phase three is notably high. The company is also advancing its norovirus vaccine to phase three trials and is collaborating with Merck on a personalized cancer vaccine.
Original Story https://www.cnbc.com/2024/09/12/moderna-rd-day-1-billion-in-cost-cuts-10-product-launches-planned.html
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