Shares of Moderna, Inc. (MRNA) tumbled 5.05% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results. The biotechnology company reported lower-than-expected revenue and announced plans for significant cost reductions, highlighting ongoing challenges in the post-pandemic vaccine market.

Moderna posted Q1 revenue of $108 million, down 35.3% year-over-year and falling short of analysts' estimates of $117.9 million. The company reported a loss per share of $2.52, which was better than the expected loss of $3.10 per share. The decline in revenue was primarily attributed to lower COVID-19 vaccine sales, as demand continues to shift towards a seasonal pattern.

Despite the revenue miss, Moderna reaffirmed its full-year 2025 revenue guidance of $1.5 billion to $2.5 billion. However, the company announced plans to reduce its estimated GAAP operating costs by $1.4 billion to $1.7 billion by 2027, compared to its 2025 estimates. This cost-cutting initiative aims to streamline operations and prioritize investments in key areas such as oncology research.

Stéphane Bancel, CEO of Moderna, commented on the results: "In the first quarter, we continued to execute with financial discipline, significantly reducing our operating expenses, and further prioritized our investments in oncology. Looking ahead, we are reiterating our 2025 financial framework and announcing a cost structure that is expected to reduce our annual operating expenses by approximately $1.5 billion by 2027."

The company also provided updates on its product pipeline, including progress on its next-generation COVID-19 vaccine and RSV vaccine for high-risk adults. Moderna expects regulatory decisions on these products in the coming months, with PDUFA goal dates set for May 31 and June 12, 2025, respectively.

While Moderna's cost-cutting measures and pipeline advancements offer some positives, investors appear concerned about the company's ability to drive growth in a post-pandemic environment. The sharp decline in Q1 revenue and the need for significant cost reductions highlight the challenges Moderna faces as it transitions from its COVID-19 vaccine success to a broader portfolio of mRNA-based therapeutics.