LONDON (ShareCast) - (Sharecast News) - Moderna slashed its 2025 revenue projection by $1bn on Monday, citing reduced demand for its Covid-19 and respiratory syncytial virus (RSV) vaccines.
The revised guidance put expected revenue between $1.5bn and $2.5bn, down from its previous forecast of $2.5bn to $3.5bn.

Most of the sales were anticipated in the latter half of the year.

The announcement, made ahead of the JPMorgan Healthcare Conference, triggered a steep drop in Moderna's share price in early trading on Monday.

Moderna said it was navigating declining Covid vaccination rates and slower-than-anticipated adoption of its RSV vaccine.

The company's Covid shot, which once generated annual sales of $18bn at the height of the pandemic, saw revenue drop to about $3bn in 2024.

Demand for booster shots had continued to decline, with US vaccination rates down 7% year-on-year in the retail market.

Increased competition in the Covid vaccine market, particularly from Novavax's new partnership with Sanofi, was further pressuring Moderna's market share, which fell from 48% in 2023 to 40% in 2024.

Additionally, uncertainties surrounding manufacturing timelines and regulatory recommendations for RSV revaccination were expected to pose further challenges.

To offset the revenue decline, Moderna said it was planning to implement aggressive cost-cutting measures, aiming to reduce expenses by $1bn in 2025 and an additional $500m in 2026.

Despite those measures, the firm said it was still committed to expanding its pipeline, targeting approvals for up to 10 new products by 2028.

Key candidates included a combination Covid-flu vaccine and a next-generation Covid shot, with regulatory decisions expected as early as this May.

Moderna was also advancing late-stage trials for vaccines targeting seasonal flu, norovirus, and cytomegalovirus (CMV).

While an independent review of the CMV trial found it had not yet met early efficacy criteria, the study was continuing, with final results expected later in the year.

At 1007 EST (1507 GMT), shares in Moderna were down 19.88% on Nasdaq at $33.86.

Reporting by Josh White for Sharecast.com.

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