MW Moderna's stock tumbles to post-COVID lows after revenue outlook disappoints

By Tomi Kilgore

Revenue seen falling by roughly one-third in 2025, and cost cutting to accelerate

Shares of Moderna Inc. were plunging in early trading Monday, after the biotechnology company provided a downbeat revenue outlook and said it expects to burn more than $3 billion in cash in 2025.

The company also said it was accelerating and expanding its cost-cutting plan, and expects cost reductions of $1 billion this year and an additional $500 million in savings next year.

The stock $(MRNA)$ took a 16.7% dive in premarket trading, putting it on track to open around the lowest prices since April 2020.

The company said it recorded $3.0 billion to $3.1 billion in product sales in 2024, with "more than" coming from sales of its COVID-19 vaccine Spikevax, while its mResvia vaccine for respiratory syncytial virus (RSV) contributed "minimal" sales.

That compared with previous guidance of $3.0 billon to $3.5 billion, and is below the FactSet sales consensus of $3.29 billion.

For 2025, the company expects revenue of $1.5 billion to $2.5 billion, which at the midpoint of the guidance would imply a 34% decline. The current FactSet sales consensus is for sales of $2.92 billion.

Moderna said it expects most of the revenue to come in the second half of the year, primarily from Spikevax and mResvia sales.

The company said it also expects to end 2025 with cash and investments of about $6 billion, which is down from the $9.5 billion in cash, cash equivalents and investments the company had at the end of 2024.

Separately, Moderna said it has filed for approval of its next-generation COVID-19 vaccine and has filed for approval of its flu-COVID combination vaccine.

After receiving approval in 2024 for mResvia for adults ages 60 and older, the company has filed for approval for mResvia for high-risk adults 18 to 59.

The stock has plummeted 60.1% over the past 12 months through Friday, while the iShares Biotechnology ETF IBB has slipped 3.2% and the S&P 500 index SPX has rallied 21.8%.

-Tomi Kilgore

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January 13, 2025 08:11 ET (13:11 GMT)

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