Moderna Delays Key Product Timeline, Share Prices Plunge

Moderna has delayed the timeline for developing several key products, pushing its break-even goal by two years. The company projects lower-than-expected sales for 2025, causing shares to drop 13%. The regulatory process for flu and cancer vaccines is taking longer, and new product revenues are expected to ramp up from 2028.

Moderna has pushed its break-even goal by two years, impacting its share prices which tumbled 13% before the bell on Thursday. The delay in product development and lower sales projections for 2025 hit investor confidence hard.

The company's struggle to move beyond its COVID vaccine is evident, with regulatory processes for flu and cancer vaccines taking longer than initially anticipated. Moderna expects to report $6 billion cash on hand by the end of 2024, at the lower end of its previous estimate.

Cost-saving measures, including a $1.1 billion reduction in R&D starting 2026, and a revised break-even timeline to 2028 mark significant adjustments to its financial strategy. The FDA's recent feedback on Moderna's cancer vaccine, developed with Merck, did not favor accelerated approval.

(With inputs from agencies.)