Moderna's stock price takes a significant hit after the company lowers its 2025 revenue forecast. The company cites a drop in vaccine sales, particularly its RSV shot, as a contributing factor.
Moderna 's shares plummeted by over 17% in premarket US trading on Monday after the company significantly reduced its revenue projections for 2025. The pharmaceutical giant now anticipates annual sales to fall between $1.5 billion and $2.5 billion, marking a substantial drop from its previous estimate of $2.5 billion to $3.5 billion. This revised outlook falls short of Wall Street's expectations of $2.92 billion, according to Bloomberg consensus forecasts.
Moderna stated that the majority of its revenue is projected to be realized in the latter half of the year, primarily driven by sales of its Spikevax COVID-19 vaccine and mRESVIA respiratory syncytial virus (RSV) shot. Spikevax generated $1.8 billion in sales during the company's fiscal third quarter, fueled by robust demand in the US. However, mRESVIA's sales reached only $10 million, considerably lower than analysts' anticipated $135 million, as reported by Reuters citing LSEG data.In a statement, Moderna emphasized its commitment to accelerating and expanding existing cost efficiency and prioritization programs. The company anticipates achieving $1 billion in cash cost reductions by 2025 and an additional $500 million in potential savings by 2026. Moderna's product sales in 2024 are estimated to range between $3 billion and $3.1 billion, with $1.7 billion attributed to the US market and $1.3 billion to $1.4 billion from the rest of the world. This includes over $3 billion in Spikevax sales and minimal contributions from mRESVIA, according to the company.Moderna's Chief Executive Officer, Stephane Bancel, revealed that full-year cash operating expenses were reduced by 25% compared to 2023. Bancel expressed the company's continued focus on three key strategic priorities: driving sales growth, securing up to 10 product approvals over the next three years, and implementing cost reductions across its operations. In November, Moderna projected 2024 sales between $3 billion and $3.5 billion, despite anticipating lower revenue from its COVID-19 vaccine compared to the previous year. During that time, Chief Financial Officer James Mock informed investors that the company expected overall fourth-quarter sales to fall between $200 million and $500 million, assuming flat or declining COVID-19 vaccination rates compared to 2023.
MODERNA REVENUE GUIDANCE VACCINES STOCK
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