Moderna announced on Thursday its intention to reduce expenses by approximately $1.1 billion by 2027, alongside a strategic plan to introduce 10 new products within the same timeframe.
The company’s decision reflects a shift in focus following the decline of its Covid-19 vaccine business.
The biotech firm revealed that it will streamline its research and development (R&D) spending, aiming to lower costs to between $3.6 billion and $3.8 billion by 2027, down from the anticipated $4.8 billion by the end of this year. This adjustment involves halting work on some existing pipeline projects and discontinuing others to manage spending more effectively.
Moderna’s CEO, Stéphane Bancel, emphasized the need to “pace ourselves” in R&D investments. The company plans to focus on advancing its product pipeline while scaling back on less critical research areas. Bancel referred to research on viruses that remain dormant in patients and can reactivate later.
“We are putting our latent product portfolio on hold,” said Bancel.
At its annual research and development day in New York, Moderna highlighted progress in several areas. The company announced positive late-stage trial results for its respiratory syncytial virus (RSV) vaccine in high-risk adults aged 18 to 59 and a new standalone flu vaccine for individuals aged 65 and older. Moderna plans to seek approval for these products later this year.
In addition to its respiratory vaccines, Moderna is working on a combination Covid-19 and flu vaccine and an updated version of its Covid-19 vaccine. The company has reported positive phase three results for five respiratory vaccines and anticipates submitting three for approval this year.
Moderna also has five non-respiratory products in its pipeline, including candidates for cancer, latent viruses, and rare diseases, which it aims to have approved by 2027. Despite the budget cuts, the company projects a compounded annual growth rate of over 25% from 2026 to 2028, driven by these new product launches.
The company’s revised financial outlook includes a revenue forecast of $2.5 billion to $3.5 billion for 2025. Moderna’s recent stock performance has been impacted by shrinking demand for Covid-19 vaccines and a slower-than-expected launch of its RSV vaccine, resulting in a notable decline in stock value this year.
Moderna remains optimistic about its future prospects, citing a high rate of success in its clinical trials.
CNBC, Market Watch, Investor’s Business Daily, and Investing.com contributed to this report.
