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6 minutes ago
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Moderna Is Cutting 10,000 Jobs as Its Business Erodes. How Should You Play MRNA Stock Here?
Moderna (MRNA) skyrocketed to fame during the pandemic, delivering one of the first mRNA-based Covid-19 vaccines and quickly becoming a Wall Street darling. Its vaccine shot brought in billions, positioning the biotech firm as a symbol of innovation and speed in a global crisis. But the post-Covid world hasn't been as kind. With vaccination rates falling and Spikevax sales drying up, revenues have tumbled. The gold rush moment is clearly over. Now, in a bid to stay lean, Moderna is cutting roughly 10% of its workforce as part of a broader plan to reduce annual operating expenses by $1.5 billion through 2027. The company tried to dodge layoffs by tightening R&D budgets, dialing down manufacturing, and renegotiating supplier deals. But with the market shifting and respiratory vaccine sales stalling, CEO Stéphane Bancel says it's time to realign the business with a leaner game plan. More News from Barchart Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now? Amazon's $36M Bet on Quantum Computing: What Investors Need to Know AMD Stock Slips After Q2 Earnings, But Here's Why It's a Buying Opportunity Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! The company is betting big on a pipeline loaded with promise — next-gen mRNA shots in oncology, rare diseases, and latent viruses. But with MRNA stock down more than 90% from its pandemic highs and policy headwinds brewing, is this a comeback play or a value trap? How should investors approach the biotech stock now? About Moderna Stock Based in Cambridge, Massachusetts and founded in 2010, Moderna began as a moonshot on mRNA tech, chasing cures for infectious diseases, rare disorders, cancer, and more. Backed by major players like AstraZeneca (AZN) and the Gates Foundation, it built a powerful platform with world-changing potential. Its market capitalization currently stands at $10.4 billion. When the pandemic hit, Moderna went from a clinical-stage underdog to a global hero with a Covid-19 vaccine that changed everything. But as the world moved on, demand faded, and so did the company's momentum. After peaking just shy of $500 in 2021, MRNA stock has crashed 94% from that level. In 2025 alone, shares are down 37%, including a 12% dip in just the past month. A lukewarm second-quarter earnings report last week triggered a 6.6% dip in just one session. In terms of valuation, MRNA stock is trading at 3.3 times sales, which is lower than its own five-year average multiple. Moderna's Mixed Q2 Earnings Report On Aug. 1, Moderna dropped its Q2 earnings report, showing signs of tighter control amid a post-Covid reset. The company posted a loss of $2.13 per share, still in the red, but better than both Wall Street's projections and last year's results. Revenue came in at $142 million, down 41% year-over-year (YOY) but still ahead of estimates. The decline was due to shrinking demand for its Covid-19 vaccine, Spikevax, which made up nearly all of the $114 million in product sales. The real story here isn't just about numbers but about a pivot. With the pandemic in the rearview, Spikevax is settling into its new role as a seasonal product, and mResvia — the company's newly launched RSV vaccine — barely moved the needle this quarter. Add to that a sharp 51% drop in collaboration and licensing revenue, and it is clear the biotech is feeling the squeeze. So, Moderna is tightening its belt, and fast. Operating costs are being hacked down as part of a major restructuring. SG&A expenses fell 14%, and R&D was slashed 43% to $700 million, largely due to scaled-back respiratory programs and slower clinical activity. But perhaps the most visible shift is in the workforce. As part of the company's cost-streamlining drive, it is trimming nearly 10% of its global staff. It's a tough call, but a necessary one to keep the long-term mission on track. Looking forward, Moderna revised its full-year revenue guidance to between $1.5 billion and $2.2 billion, down $300 million from its earlier high-end forecast. The reason is that a delivery delay of U.K. vaccine orders has now pushed into early 2026. Most of the 2025 revenue is expected to roll in during the second half, with Q3 pulling in about 40% to 50% of that haul. Meanwhile, R&D guidance has also been trimmed to $3.6 billion and $3.8 billion, aligning with workforce reductions and lower clinical spend. Despite the turbulence, the company is set to close 2025 with approximately $6 billion in cash and investments — a solid cushion for navigating whatever comes next. Analysts tracking the biotech company anticipate Moderna's losses to deepen by 11% YOY to around -$9.82 per share in fiscal 2025, then narrow by 27% annually to -$7.21 per share in fiscal 2026. What Do Analysts Expect for Moderna Stock? After Moderna's Q2 earnings release, Wall Street's confidence took a softer tone, reflected clearly in the updated price targets. Bank of America nudged its target down to $24 from $25, holding firm on its 'Underperform' rating. Analyst Tim Anderson is not sold on Moderna's long-term growth story, pointing out that the company's near- and mid-term outlook still leans heavily on Covid vaccine sales, which are notoriously hard to predict in this post-pandemic world. Bank of America has been skeptical for a while. The firm reinstated coverage back in December with that same 'Underperform' call, flagging doubts about the company's other programs like RSV and CMV. Despite Moderna's push to diversify, the brokerage firm is not yet convinced there's enough there to support sustainable growth. Barclays also reined things in, trimming its price target from $40 to $31 while maintaining an 'Equal Weight' rating. Analyst Gena Wang said the downward shift stems largely from Moderna pushing some U.K. vaccine revenue into early 2026. Still, Wang believes further cost-cutting should help Moderna stay on track with its goal of breaking even by 2028. Moderna's reinvention pitch is loud, but the Street is staying cautious. Among the 26 analysts covering MRNA stock, the consensus rating is a 'Hold.' That's based on three analysts recommending a 'Strong Buy,' 19 advising a 'Hold,' one giving a 'Moderate Sell,' and the remaining three suggesting a 'Strong Sell.' The mean price target of $41.90 for MRNA stock suggests more than 57% upside potential from current levels. The Street-high target of $198 implies that the stock could rally as much as 644%. On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
7 days ago
- Business
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MRNA Beats on Q2 Earnings & Sales, Stock Down on Lowered Sales View
Moderna MRNA incurred a loss of $2.13 per share in the second quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of $2.99. In the year-ago period, the company had reported a loss of $3.33. Total revenues in the quarter were $142 million, which beat the Zacks Consensus Estimate of $127 million. Revenues declined by around 41% year over year, owing to lower net product sales. More on MRNA's Q2 Earnings Moderna currently has two marketed vaccines in its portfolio, the COVID-19 vaccine Spikevax and the recently launched RSV vaccine mResvia. Product sales were down 38% year over year to $114 million due to lower Spikevax sales. Per Moderna, almost the entirety of this number was generated from Spikevax, with a 'negligible' contribution from mResvia. Moderna generated $28 million from grants, collaborations, licensing and royalty revenues in the quarter, down 51% year over year. The company usually earns collaboration revenues from agreements with several big pharma/biotech companies, including Merck MRK and Vertex Pharmaceuticals. Operating Costs Decline Amid Streamlining Efforts Selling, general and administrative (SG&A) expenses were $230 million, down 14% year over year. This downside was primarily due to broad-based cost-cutting activities. Research & development (R&D) expenses were down 43% to $700 million, driven by the reduction in clinical spending across respiratory programs due to the timing of clinical studies and program wind-downs. MRNA Revises '25 Outlook Moderna revised its total revenue guidance for the full year, which was initially issued in January. It now expects total revenues in the range of $1.5-$2.2 billion, which reflects a $300 million cut from the upper end of the previous guidance of $1.5-$2.5 billion. Per the company, this revision is mainly driven by the timing shift of deliveries of contracted revenue for the U.K. into the first quarter of 2026. Shares of Moderna were down 6% in pre-market trading today, attributed to the downgrade in guidance. Year to date, the stock has underperformed the industry. Image Source: Zacks Investment Research Owing to the seasonality of its respiratory business, Moderna is expected to generate the majority of the guided revenue in the second half of the year. The company has already recorded total revenues worth $250 million in the first half of 2025. For the second half, Moderna expects a revenue split of 40-50% in the third quarter, with the balance in the fourth quarter. MRNA also lowered the guidance for R&D expenses during the quarter, now expecting to incur between $3.6 billion and $3.8 billion (previous guidance: $4.1 billion). This is likely to be due to the company's plans to cut nearly 10% workforce, as announced yesterday. Moderna reiterated its projections for SG&A expenses to be around $1.1 billion. The company also lowered its forecasts for capital expenditure to be about $0.3 billion (previous guidance: $0.4 billion). Moderna expects to end 2025 with cash, cash equivalents and investments of nearly $6 billion. MRNA's Recent Pipeline Updates The company secured three regulatory approvals from the FDA in the past few months. These include label expansion for using mResvia in high-risk adults aged 18-59 and full approval for Spikevax in pediatric patients aged between six months through 11 years old (previously granted emergency use authorization for this population by the agency). The FDA also approved mNexspike, a next-generation refrigerator-stable version of Spikevax. Moderna is also evaluating several pipeline candidates in late-stage development. Last month, the company reported that a phase III efficacy study (P304) showed that its influenza vaccine candidate, mRNA-1010, achieved superior relative vaccine efficacy to an approved flu shot marketed by GSK. The above results not only supports potential approval of the standalone flu shot but also strengthen the case for refiling mRNA-1083, an investigational combination vaccine against COVID-19 and influenza. In May, Moderna voluntarily withdrew a filing with the FDA for mRNA-1083 after the agency requested additional efficacy data for the flu component. This candidate integrates the company's COVID-19 shot with mRNA-1010. Moderna is currently in discussions with the FDA regarding data requirements for resubmitting the regulatory filing. An important candidate in the company's pipeline is intismeran autogene, a personalized cancer therapy, which is being developed in collaboration with Merck. The companies are evaluating the therapy in three pivotal phase III studies, one in the melanoma indication and the other two in the non-small cell lung cancer space. It is also being evaluated in separate mid-stage studies for high-risk bladder cancers (both muscle-invasive and non-muscle-invasive) and adjuvant renal cell carcinoma. Moderna and Merck recently launched a new phase II study evaluating the therapy as a first-line treatment for patients with metastatic melanoma. In a separate press release, Moderna announced that the U.K. Court of Appeal has upheld the validity of its EP'949 patent and infringement by Pfizer PFE/BioNTech's BNTX COVID-19 vaccine Comirnaty. The patent relates to chemically modified mRNA, one of the company's foundational technologies that enables the development of mRNA-based medicines. The latest decision affirms the High Court's initial ruling from last year, which was also in Moderna's favor. Moderna, Inc. Price Moderna, Inc. price | Moderna, Inc. Quote MRNA's Zacks Rank Moderna currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report BioNTech SE Sponsored ADR (BNTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
01-08-2025
- Business
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Moderna's Key Patent Win Overshadowed By Gloomy Outlook
Moderna Inc. (NASDAQ:MRNA) reported on Friday a second-quarter loss of $2.13 per share, beating the consensus of a $2.98 loss, an improvement from a loss of $3.33 a year ago. The COVID-19 vaccine maker reported quarterly sales of $142 million, beating the consensus of $116.34 million. Sales fell 41% from $241 million in the same period in 2024. The decline was primarily driven by lower COVID-19 vaccine sales, which totaled $114 million in the is expected to be concentrated in the second half of the year, aligning with the fall and winter seasons as the vaccine transitions into a seasonal respiratory product. The company reported $114 million in Spikevax sales in the second quarter of 2025, including $88 million in U.S. and $26 million in international sales. Moderna recently announced U.S. Food and Drug Administration (FDA) approval for the supplemental Biologics License Application (sBLA) for Spikevax in children 6 months through 11 years of age who are at increased risk for COVID-19 disease. The company's COVID-19 vaccine (mRNA-1273) was previously available for pediatric populations under Emergency Use Authorization (EUA). Additionally, the company announced it has received final approval from the European Medicines Agency for Spikevax targeting the LP.8.1 variant in individuals six months of age and older. Moderna also announced FDA approval for mNEXSPIKE (mRNA-1283), a next-generation vaccine against COVID-19, for use in all adults aged 65 and older, as well as individuals aged 12-64 years with at least one underlying risk factor. On Wednesday, the European Commission approved the updated formulation of the COVID-19 vaccine Spikevax, targeting the SARS-CoV-2 variant LP.8.1, for individuals six months of age and older. Moderna reported negligible mRESVIA (RSV vaccine) sales in the second quarter of 2025. Moderna's RSV vaccine for adults aged 60 years and older has been approved in approximately 40 countries. Additionally, Moderna recently announced that the FDA has approved mRESVIA (mRNA-1345), expanding the previous indication, for the prevention of lower respiratory tract disease (LRTD) caused by RSV in individuals 18-59 years of age who are at increased risk for disease. View more earnings on MRNA Cost of sales for the second quarter of 2025 was $119 million, which included third-party royalties of $6 million, inventory write-downs of $38 million, and unutilized manufacturing capacity and wind-down costs of $52 million. Cost of sales was relatively flat compared to the same period in 2024. The increase in cost of sales as a percentage of net product sales, to 105% from 62% in the second quarter of 2024, was mainly driven by lower net product sales. R&D expenses were $700 million, a 43% decrease year over year. The reduction was primarily driven by lower clinical trial and manufacturing expenses, reflecting reduced production spending, program wind-downs, and the timing of trial activities across the company's respiratory vaccine portfolio. Outlook Moderna has revised its 2025 revenue outlook to $1.5 billion-$2.2 billion compared to $1.5 billion-$2.5 billion, compared to a consensus of $2.09 billion, reflecting a $300 million reduction at the high end of the range. The update is primarily driven by the timing shift of deliveries of contracted revenue for the U.K. into the first quarter of 2026. Moderna expects a revenue split of 40-50% in the third quarter for the second half of the year, with the balance in the fourth quarter of 2025. Cost of sales for 2025 is expected to be approximately $1.2 billion. Full-year 2025 research and development expenses are anticipated to be $3.6 to $3.8 billion, lowered from previous expectations of approximately $4.1 billion. Year-end cash and investments for 2025 are projected to be approximately $6 billion. Recently, Moderna announced an organizational restructuring that will reduce its global workforce by approximately 10%. The company anticipates a total headcount of under 5,000 by year-end. Legal Ruling On Friday, Moderna announced that the U.K. Court of Appeal upheld the validity of Moderna's EP'949 patent. European patent EP'949 relates to chemically modified mRNA, one of Moderna's foundational technologies. The decision affirms the High Court's initial ruling from July 2024 that the EP'949 patent is valid and infringed by Pfizer Inc (NYSE:PFE) / BioNTech SE's (NASDAQ:BNTX) COVID-19 vaccine, Comirnaty. Pfizer/BioNTech subsequently appealed. With this ruling, the U.K. becomes the first jurisdiction globally to issue a second-instance decision confirming the validity of one of Moderna's core mRNA patents. In Germany, the Regional Court found that Pfizer and BioNTech infringed Moderna's modified mRNA patent and confirmed Moderna's right to seek damages. An appeal is pending. The European Patent Office upheld the validity of EP'949 in opposition proceedings. An appeal is pending. Price Action: Moderna stock is trading 7.92% lower to $27.22 premarket at last check Friday. Read Next:Photo by Lutsenko_Oleksandr via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? MODERNA (MRNA): Free Stock Analysis Report This article Moderna's Key Patent Win Overshadowed By Gloomy Outlook originally appeared on © 2025 Benzinga does not provide investment advice. 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Yahoo
01-08-2025
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Moderna quarterly sales beat Street estimates on COVID booster sales, cost cuts
By Patrick Wingrove (Reuters) -Moderna topped Wall Street sales expectations and reported a lower-than-expected second-quarter loss on Friday, driven by robust Spring COVID booster demand and aggressive cost cuts. The company also lowered its 2025 sales forecast to $1.5 billion to $2.2 billion, cutting $300 million from the top end, as UK revenue deliveries shifted into early 2026. Moderna said 40% to 50% of that revenue will be recognized in the third quarter of 2025, with the rest expected in the fourth. The Cambridge, Massachusetts-based vaccine maker reported quarterly revenue of $142 million, a 41% drop from last year, but still ahead of analyst estimates of $112.9 million, according to LSEG data. On an adjusted basis, Moderna posted a quarterly loss of $2.13 per share, less than $2.97 a share loss analysts had projected. Moderna finance chief James Mock attributed the results to spring COVID booster shot uptake, which was down 11% year-over-year but higher than anticipated, and $800 million in cost cuts in the first half of 2025. "I don't think analysts thought we could get that much (in costs) out of the business," he said. Mock added that the spring sales boost could signal solid demand for COVID vaccines this autumn. The Spikevax COVID-19 shot delivered $114 million in sales, beating the expected $87 million for the quarter, but a far cry from its 2022 pandemic peak, when the vaccine brought in $18.4 billion. The company did not disclose sales for mRESVIA, its RSV vaccine, saying they were negligible. Analysts had expected $1 million in quarterly sales for that shot. Moderna said it plans to cut operating costs by $400 million in 2025, bringing them down to $5.9 billion to $6.1 billion. It had previously projected cuts of $4.7 billion to $5 billion by 2027. The company on Thursday said it would cut around 10% of its global workforce, shrinking to under 5,000 employees by year's end, as part of its move to trim operating expenses. Mock said the job cuts would affect nearly every function at the company. Moderna is counting on new mRNA products such as its experimental COVID-flu combo shot to offset slumping COVID vaccine sales and a slower-than-hoped rollout of the RSV shot. Moderna, which voluntarily withdrew its COVID-flu combo shot approval application in May, said it is working with regulators to clarify data requirements for resubmission. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
01-08-2025
- Business
- Reuters
Moderna quarterly sales beat Street estimates on COVID booster sales, cost cuts
Aug 1 (Reuters) - Moderna (MRNA.O), opens new tab topped Wall Street sales expectations and reported a lower-than-expected second-quarter loss on Friday, driven by robust Spring COVID booster demand and aggressive cost cuts. However, its shares fell more than 4% in premarket trading after the company lowered its 2025 sales forecast to $1.5 billion to $2.2 billion, cutting $300 million from the top end, as UK revenue deliveries shifted into early 2026. Moderna said 40% to 50% of that revenue will be recognized in the third quarter of 2025, with the rest expected in the fourth. The Cambridge, Massachusetts-based vaccine maker reported quarterly revenue of $142 million, a 41% drop from last year, but still ahead of analyst estimates of $112.9 million, according to LSEG data. On an adjusted basis, Moderna posted a quarterly loss of $2.13 per share, less than $2.97 a share loss analysts had projected. Moderna finance chief James Mock attributed the results to spring COVID booster shot uptake, which was down 11% year-over-year but higher than anticipated, and $800 million in cost cuts in the first half of 2025. "I don't think analysts thought we could get that much (in costs) out of the business," he said. Mock added that the spring sales boost could signal solid demand for COVID vaccines this autumn. The Spikevax COVID-19 shot delivered $114 million in sales, beating the expected $87 million for the quarter, but a far cry from its 2022 pandemic peak, when the vaccine brought in $18.4 billion. The company did not disclose sales for mRESVIA, its RSV vaccine, saying they were negligible. Analysts had expected $1 million in quarterly sales for that shot. Moderna said it plans to cut operating costs by $400 million in 2025, bringing them down to $5.9 billion to $6.1 billion. It had previously projected cuts of $4.7 billion to $5 billion by 2027. The company on Thursday said it would cut around 10% of its global workforce, shrinking to under 5,000 employees by year's end, as part of its move to trim operating expenses. Mock said the job cuts would affect nearly every function at the company. Moderna is counting on new mRNA products such as its experimental COVID-flu combo shot to offset slumping COVID vaccine sales and a slower-than-hoped rollout of the RSV shot. Moderna, which voluntarily withdrew its COVID-flu combo shot approval application in May, said it is working with regulators to clarify data requirements for resubmission.
