Moderna (NASDAQ:MRNA) was in focus Thursday morning after the vaccine maker announced plans to expand its cost efficiency and prioritization programs amid declining sales of its Covid shots.
The company is expanding its cost efficiency efforts, slashing its estimated GAAP operating costs for 2026 to between $5.4B and $5.7B, down from a previous estimate of $5.9B.
Looking ahead, Moderna now projects 2027 operating costs between $4.7B and $5B, resulting in a reduction of $1.4B to $1.7 in estimated operating costs by 2027, compared to its 2025 estimate.
The company's total operating expenses were nearly $1.16B in Q1, down from $1.43B in the prior year quarter.
The announcement was made in conjunction with the company’s first-quarter financial release, which showed continued losses amid declining sales. GAAP loss per share was -$2.52 that managed to top Street estimates. Sales, however, fell short of analysts projections.
The Cambridge, Massachusetts-based biotech reported a net loss of $1B in Q1, an improvement from the $1.2B loss in the same quarter last year, on revenue of $108M that fell 35.3% Y/Y primarily due to lower net product sales of $86M.
The decline in product sales reflects reduced vaccination rates and the ongoing normalization of COVID into a seasonal commercial market, with demand expected to be concentrated in the second half of the year, the company said.
Sales from Spikevax reached $84M in Q1, while mRESVIA, the company's vaccine for respiratory syncytial virus (RSV) added $2M to the topline.
“Moderna’s Q1 earnings reflect the ongoing decline in demand for its COVID-19 vaccine and the seasonality of its respiratory products. The company’s efforts to improve costs are being realized, but cash burn remains high amidst little to no revenues. Moving ahead, the company is banking on its RSV vaccine in 2H 2025, especially after its flu/COVID-19 combination vaccine was pushed back into 2026 after the FDA requested Phase 3 flu efficacy data. This most recent setback is emblematic of the regulatory and competitive risks in the vaccine market,” said Seeking Alpha analyst Stephen Ayers.
Moderna (NASDAQ:MRNA) reiterated its expected revenue of $1.5B to $2.5B for 2025, with approximately $0.2B projected in the first half of the year, reflecting the seasonality of its respiratory business. Analysts expect sales of $2.13B for the year.
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