Moderna Faces Setbacks, Delays Break-Even Goal Amid Product Development Hurdles

Moderna has postponed its break-even goal by two years due to delays in developing key products and predicted lower sales for 2025. Shares fell by 17.6%, and the company outlined future projections and new product timelines, shifting focus towards combination vaccines and regulatory processes.

Moderna has pushed its break-even goal by two years, citing delays in the development of key products and forecasting 2025 sales to be below this year's expectations. This announcement sent its shares plunging to a four-year low, falling 17.6% to $65.50 in early trading on Thursday.

The biotechnology firm anticipates sales between $2.5 billion and $3.5 billion next year, which falls short of analysts' forecast of $3.74 billion, according to LSEG data. The company is struggling to pivot from its COVID-19 vaccine as the regulatory timeline for its flu and cancer vaccines extends.

Moderna expects a cash reserve of $6 billion by the end of 2024, aligning with the low end of its prior $6 billion to $7 billion forecast. Cost-saving measures will reduce research and development expenses by $1.1 billion starting in 2026. The company now expects to break even on an operating cash cost basis by 2028.

(With inputs from agencies.)