Moderna faces backlash as it forecasts steep sales drop for 2025
- Moderna anticipates its revenue for 2025 to fall between $1.5 billion and $2.5 billion.
- The company plans to cut cash costs by $1 billion in the next year and has additional cuts planned for 2026.
- This unexpected prediction has led to a decline in Moderna's stock prices as the market reacts.
In a recent announcement, Moderna, the renowned vaccine manufacturer, predicted a substantial decline in sales for the upcoming year, 2025. The company's projected revenue range has been estimated to be between $1.5 billion and $2.5 billion, sharply down from the $3.1 billion generated the previous year. This news comes amid a challenging market landscape as Moderna shifts gears from the explosive growth witnessed during the initial phases of the COVID-19 pandemic, where it reported sales exceeding $19 billion annually. The organization's most lucrative product, the COVID-19 vaccine Spikevax, was largely responsible for its record revenue last year, contributing over $3 billion in sales alone. While Moderna also recently obtained regulatory approval for a vaccine targeting respiratory syncytial virus (RSV), its revenue from this new product has been minimal thus far. In light of these developments, the company revealed plans to expedite and broaden its cost-cutting initiatives, aiming to reduce cash expenses by $1 billion in 2025, with further cuts slated for 2026. Interestingly, analysts had optimistic forecasts for Moderna, with an average expected revenue of $2.92 billion for 2025, indicating a significant discrepancy between market expectations and the company’s real projections. Moderna's announcement was made just ahead of its participation in the J.P. Morgan Healthcare Conference in San Francisco, where more details regarding its fourth-quarter results are anticipated on February 14. The healthcare conference is a key event in the industry, where companies disclose their financial health and future outlooks to investors and analysts. As the company grapples with the ramifications of declining sales and seeks strategies to stabilize its business model, industry observers will be closely watching their upcoming financial report and additional announcements.