MW Moderna's stock is falling. Goldman Sachs says it's no longer a buy.

By Steve Goldstein

Shares of vaccine maker Moderna Inc. fell Wednesday as Goldman Sachs lowered its rating after the biotech's second cut to product revenue guidance in six months.

Moderna shares $(MRNA)$ fell 2% in premarket trade. The stock has dropped 56% over the last 12 months.

Analysts led by Salveen Richter lowered Moderna's rating to neutral from buy as they say Moderna has limited visibility on the revenue stream for the respiratory vaccine business. Goldman forecast RSV vaccine revenue of $1.5 billion, which is at the lowest end of the $1.5 billion to $2.5 billion range produced by Moderna.

The Goldman team also says Moderna won't be cash break-even until 2029, citing elevated operating expenses. Moderna is targeting that accomplishment by 2028, having delayed it from its previous goal of 2026.

Goldman flagged upcoming milestones, including Phase 1/2 cystic fibrosis data with Vertex Pharmaceuticals Inc. $(VRTX)$ in early 2025, Phase 3 trial readouts for its cytomegalovirus vaccine in 2025, and potential norovirus vaccine data later that year.

The Merck & Co.-partnered $(MRK)$ individualized neoantigen-therapy program, a key growth driver, has generated positive early data but faces a "quiet catalyst path" in 2025, the analysts added.

-Steve Goldstein

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January 29, 2025 08:50 ET (13:50 GMT)

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