Moderna Stock Drops 18% After Lowering 2025 Sales Forecast by $1 Billion
Moderna has revised its 2025 sales guidance by approximately $1 billion, anticipating revenue between $1.5 billion and $2.5 billion. The primary sources of sales are expected to come from its Covid vaccine and the newly launched RSV vaccine, with most of the sales expected to occur in the second half of the year.
This forecast revision follows a prior range of $2.5 billion to $3.5 billion, and reflects the company’s strategy to cut costs and expand its product portfolio. Despite the decline in sales, Moderna remains optimistic about its future and plans to reduce operating costs by $1 billion in 2025, with further cost reductions anticipated in 2026.
Shares of Moderna dropped by 18% after this announcement, largely due to concerns about the company’s forecasted decline. Moderna CFO, Jamey Mock, pointed out several challenges, including the increased competition in the Covid vaccine market. Moderna’s market share in the U.S. retail market for Covid shots dropped from 48% in 2023 to 40%, with further declines expected.
Other challenges impacting sales include the decline in vaccination rates, which fell by 7% in the U.S. retail market in the fall, and the uncertainty surrounding RSV revaccination recommendations by the CDC. Moderna is also facing challenges with the timing of manufacturing contracts in certain countries.
In response, Moderna plans to make strategic cost cuts to preserve cash, while continuing to focus on expanding its pipeline with new products. The company is confident that its mRNA technology will be the cornerstone of its future growth, with 10 new product approvals expected over the next few years.
Despite the challenges faced in the Covid vaccine market, Moderna is moving forward with an ambitious strategy to diversify its portfolio, including a combination vaccine for Covid and flu.
