Moderna Stock Plummets 16% After £819.59M Guidance Cut Over Respiratory Vaccine Flop

Vaccine maker Moderna's (NASDAQ: MRNA) stock prices fell by over 16% on 13th January to close at £28.81 ($35.15) after the company trimmed its 2025 revenue guidance to between £1.22 billion ($1.5 billion) and £2.04 billion ($2.5 billion) from its previous estimate between £2.04 billion ($2.5 billion) and £2.86 billion ($3.5 billion).

Wall Street expected a sales outlook of £2.39 billion ($2.92 billion). One year ago, analysts predicted Moderna's 2025 sales to reach £4.1 billion ($5 billion).

Note that the company's 2024 product sales estimate is also at the lower end of its November guidance of between £2.45 billion ($3 billion) and £2.86 billion ($3.5 billion).

Moderna's COVID-19 vaccine, Spikevax, drove £1.47 billion ($1.8 billion) in sales during Q3 2024 due to robust demand in the US.

Revenues from its latest respiratory syncytial virus vaccine, mRESVIA, fell well below expectation to around £8.19 million ($10 million), compared to analyst estimates of £110.64 million ($135 million), per Reuters, citing LSEG data.

Furthermore, Moderna's chief financial officer, James Mock, stated that overall Q4 sales were expected to be between £163.91 million ($200 million) and £409.79 million ($500 million), considering flat or reduced vaccination rates compared to 2023.

Moderna To Expedite Cost-cutting Amid R&D Slowdown

Massachusetts-based Moderna also highlighted its plans to speed up its cost-cutting program that will reduce company expenses by £819.59 million ($1 billion) in 2025 and £409.79 million ($500 million) next year.

Moderna CEO Stephane Bancel said full-year cash operating expenses for 2024 fell 25% year-over-year.

"We remain focused on our three strategic priorities: driving sales growth, delivering up to 10 product approvals over the next three years, and reducing costs across our business," Bancel added.

Last September, the company also said it would strongly pull back on R&D, which will help it break even on an operating cash cost basis in 2028.

Although Moderna recorded £7.78 billion ($9.5 billion) in cash and cash equivalents at 2024-end, it expects that figure to drop to £4.91 billion ($6 billion) by the end of this year.

Insider Stock Sales Could Signal Caution

Top executives at Moderna, including Bancel, sold a substantial stake in the company in 2024, which could add to the growing uncertainty regarding its future.

According to a Form 144 filing with the US Securities and Exchange Commission (SEC), Bancel sold MRNA shares worth £1.91 million ($2.34 million) in 2024.

More Form 144 filings filed last month show that the company's chief legal officer Shannon Thyme Klinger and president Stephen Hoge collectively sold MRNA shares worth over £130,882 ($159,692) over the past year.

Investors should note that Moderna insiders didn't buy any shares in 2024.

Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.