Moderna Faces Steep Sales Drop and Shares Slide

Moderna shares plunged in early trading on Monday after the biotech company forecasted a sharper-than-anticipated decline in sales for 2025.

The company projected revenue for the year to land between $1.5 billion and $2.5 billion, a notable drop from the $3.1 billion it earned last year. Analysts, on average, had estimated 2025 revenue at $2.92 billion, according to FactSet.

To address the financial downturn, Moderna announced plans to accelerate and expand its cost-cutting measures. The company aims to reduce cash costs by $1 billion in 2025, with additional reductions planned for 2026.

Moderna's revenue has largely been driven by sales of its COVID-19 vaccine, Spikevax, which generated over $3 billion last year. While the company also received regulatory approval for its RSV (respiratory syncytial virus) vaccine, it reported minimal sales from this new product.

The announcement came ahead of Moderna’s scheduled presentation at the J.P. Morgan Healthcare Conference in San Francisco. The company plans to release its fourth-quarter earnings results on February 14.

Moderna is a few years removed from its peak annual revenue of over $19 billion during the height of the COVID-19 vaccination rollout.

Shares of the Cambridge, Massachusetts-based company dropped 19% in morning trading, falling $8.18 to $34.07.