Moderna Inc. (MRNA) shares plummeted over 5% in pre-market trading on Wednesday, as the biotech firm faced a double whammy of concerns over potential policy changes and a downgrade from a major Wall Street firm.

The selloff in Moderna stock comes ahead of the confirmation hearings for Robert F. Kennedy Jr. as the Secretary of the Department of Health and Human Services. Kennedy, a well-known vaccine skeptic, could introduce significant policy shifts if confirmed, sparking uncertainty for companies like Moderna involved in vaccine development.

Adding to the pressure, Goldman Sachs downgraded Moderna from Buy to Neutral, slashing its price target to $51 from $99. The investment bank cited limited visibility on the respiratory vaccine revenue stream and delayed cash flow break-even targets as key reasons for the rating cut.

Analysts at Goldman now expect Moderna to achieve cash flow break-even by 2029, a year later than the company's revised 2028 guidance. This delay stems from elevated operating expenses and the potential need for equity offerings to manage cash flow in the coming years.

The broader biotech sector also faced headwinds as investors remained cautious ahead of the RFK Jr. hearings, with concerns over potential disruptions to drug pricing and regulatory policies under a new administration.