Moderna, Inc. (MRNA) shares plummeted 7.67% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results. The biotechnology company reported a significant year-over-year decline in revenue and announced plans for substantial cost reductions, sparking investor concerns about its future growth prospects.
For the first quarter of 2025, Moderna reported revenue of $108 million, down 35.3% from $167 million in the same period last year. The company attributed this decline to lower COVID-19 vaccine sales, reflecting decreased vaccination rates and the continued normalization of the COVID-19 market into a seasonal commercial business. Moderna posted a net loss of $971 million, or $2.52 per share, compared to a loss of $1.18 billion, or $3.07 per share, in Q1 2024.
Despite the weak quarter, Moderna reiterated its full-year 2025 revenue guidance of $1.5 billion to $2.5 billion. However, the company also announced plans to reduce its annual operating expenses by approximately $1.5 billion by 2027. Moderna expects its GAAP operating costs to be between $5.4 billion and $5.7 billion in 2026, down from its previous estimate of $5.9 billion.
Stéphane Bancel, CEO of Moderna, commented on the results: "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. With several Phase 3 readouts approaching and continued momentum toward 10 product approvals, we remain confident in Moderna's long-term outlook."
The market's negative reaction to Moderna's earnings report reflects ongoing concerns about the company's ability to diversify beyond its COVID-19 vaccine and maintain growth in a post-pandemic environment. Investors will be closely watching Moderna's progress in its pipeline products, including its RSV vaccine and ongoing clinical trials, as the company seeks to navigate the challenging transition from a pandemic-driven business model to a more diversified pharmaceutical company.
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