Latest news with #StéphaneBancel
Yahoo
03-08-2025
- Business
- Yahoo
Moderna sharpens focus on $1.5bn cost cutting plan after 41% revenue slump
Just one day after CEO Stéphane Bancel's sudden announcement of a 10% workforce reduction, Moderna has released Q2 2025 that that fell short of analyst expectations. Revenue declined 41% to $142m, largely due to to a drop in Covid vaccine sales, particularly Spikevax and mRESVIA, the company said. The results also weighed on the mRNA vaccine specialist's share price, which dropped by 8.9% to $26.92 per share. In an investor call, Moderna's CFO Jamey Mock blamed the revenue decline on uncertainties in vaccination rates, the competitive market environment and the size of the respiratory syncytial virus (RSV) market. This latest results follow years of poor financial performance for Moderna, which has posted substantial losses since the 2022 financial year – with revenue falling from more than $19bn in 2022 to $3.2bn in 2024. In an investor call, Moderna's Mock stated that 'advancing its pipeline' of Phase III assets and 'driving use of its commercial products' would be key to future recovery. Moderna intensifies cost-cutting efforts To offset this quarter's losses, Moderna is implementing a series of operational cost reduction strategies, aligned with both Mock and Bancel's commitment to stay 'highly focused on financial discipline". During the call, Bancel outlined a $1.5bn, 3 year cost-cutting plan, primarily focused on 'winding down' new R&D efforts – with a specific focus on respiratory health. Savings will be sought through procurement optimisation, enhanced manufacturing and a staff restructuring initiative, announced internally and through Moderna's website on 31 July. Although Moderna plans to cut more than 800 jobs, recruitment will continue, with the CEO noting that over 150 vacancies remain open. Bancel did not provide further details on who will be affected by the upcoming job cuts. Many pharma companies are citing Trump's tariffs as a key influence on their cost of sales. Mock stated that 'newly introduced tariffs are not expected to have a material impact on our cost of sales,' despite the manufacture of Moderna's portfolio being spilt amongst Europe and the US. This follows the signing of the US-EU deal, which imposes 15% tariffs on all pharmaceutical imports. Looking ahead Upon review of Moderna's Q2 2025 results, infectious disease analyst at GlobalData Anaelle Tannen noted that financial performance was slightly better than expected, and classified the results as 'unsurprising". 'Sales will likely increase in the second half of the year as the RSV, flu and Covid seasons hit the northern hemisphere,' said Tannen. Although mRNA is Moderna's bread and butter, Tannen stated that remaining solely in this area is risky until multiple high-value products reach the market. 'Moderna is at the cutting edge of mRNA technology, but the commercialisation gap is stark. There is a heavy emphasis on R&D, but profitability is low as few mRNA vaccines have made it to market yet, while the modality also faces scepticism due the expedition of Covid vaccine trials.' Asked whether diversifying away from mRNAs may benefit Moderna long-term, Tannen noted: 'Exploring other modalities wouldn't necessarily help the company either, as it would still take time to perform clinical trials and for products to attain approval.' Meanwhile, outside of Moderna, the mRNA therapy market is experiencing rapid growth, with a report from GlobalData, parent company of Pharmaceutical Technology, finding that licensing agreement deal values involving mRNA soared by 800% between 2019 and 2024. Growth of mRNA vaccines is also showing robust growth, with GlobalData analysis estimating that sales will increase from $20.1bn in 2024 to $89.8bn in 2030, at a CAGR of 28.3%. "Moderna sharpens focus on $1.5bn cost cutting plan after 41% revenue slump" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Business Insider
02-08-2025
- Business
- Business Insider
MRNA Earnings: Moderna Stock Slumps 10% on Lower Covid Vaccine Demand
Shares in drug giant Moderna (MRNA) plummeted nearly 10% today after it reported a drop in Q2 sales. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The company reported earnings for the period of -$2.13, beating expectations of -$3.03 but also recorded a 41.1% drop in year-over-year sales to $142 million. However, that still beat forecasts of $128.3 million. Sentiment Hit Investor sentiment was also hit by the company dropping its revenue guidance for the full year to $1.85 billion at the midpoint from $2 billion, a 7.5% decrease. It blamed the 'timing of shipments.' The decline was primarily driven by lower Spikevax COVID vaccine sales, which totaled $114 million in the quarter. Moderna said demand is expected to be concentrated in the second half of the year, aligning with the fall and winter seasons as the vaccine continues to transition into a seasonal respiratory product. It also reported 'negligible' RSV vaccine mRESVIA® sales in the second quarter of 2025. The figures continue Moderna's difficult year in comparison with its peers – see below. 'In the last three months, we advanced our pipeline with positive Phase 3 flu vaccine efficacy data and expanded our commercial portfolio with three new U.S. FDA approvals to drive future sales growth,' said Stéphane Bancel, Chief Executive Officer of Moderna. 'Looking forward, we have important catalysts over the next six months across our infectious disease and oncology programs that will help us deliver on the promise of our mRNA platform for patients.' Future Hopes This includes Intismeran autogene, a personalized cancer therapy which is being developed in collaboration with Merck (MRK). This includes two non-small cell lung cancer Phase 3 studies and Phase 2 studies for high-risk muscle invasive and high-risk non-muscle invasive bladder cancer. 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 less than 5,000 by the end of the year. Better news came today for the group after Pfizer (PFE) and its German partner BioNTech (BNTX) lost their bid to overturn a ruling that their COVID-19 vaccine infringed one of Moderna's patents at London's Court of Appeal.
Business Insider
01-08-2025
- Business
- Business Insider
Moderna (MRNA) Plans to Cut 10% of Its Workforce amid Falling Vaccine Sales
Earlier today, Biotech firm Moderna (MRNA) announced plans to cut around 10% of its global workforce by the end of the year as sales of its COVID-19 vaccines continue to decline. Indeed, Moderna's first‑quarter vaccine sales in May missed Wall Street expectations, and its stock has fallen by more than 20% this year, which is adding pressure to reduce costs. In a memo to employees, CEO Stéphane Bancel said that the company expects to have fewer than 5,000 employees by year‑end, down from roughly 5,800 workers in 2024. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. It is worth noting that the layoffs are just a part of the firm's plan to cut $1.5 billion in annual operating expenses by 2027, which builds on earlier cost‑saving measures. Interestingly, Bancel said that progress is being made on this front by scaling back on research and development, concluding trials on respiratory products, renegotiating supplier agreements, and lowering manufacturing costs. Although the CEO emphasized that everything was done to avoid job losses, he said that restructuring is still necessary in order to align with 'the realities of our business' while continuing to invest in new science. It also doesn't help the firm that new policy challenges under Health and Human Services Secretary Robert F. Kennedy Jr. are creating an uncertain environment for the overall vaccine industry. Nevertheless, despite the cuts, Moderna maintains that its outlook remains positive. In fact, the company now has three approved products, including a next‑generation COVID-19 shot cleared by the FDA in May, and sees the potential for up to eight additional products in the next three years. Moderna will provide further business updates when it reports quarterly results on Friday. Is MRNA Stock a Good Buy? Turning to Wall Street, analysts have a Hold consensus rating on MRNA stock based on three Buys, 13 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average MRNA price target of $48.14 per share implies 57% upside potential.
Yahoo
01-08-2025
- Business
- Yahoo
Moderna plans to slash 10% of workforce as COVID shot sales slow
Biotech company Moderna said Thursday it plans to cut 10% of its global workforce and expects to have fewer than 5,000 employees by the end of the year. The move is part of the company's ongoing effort to lower its annual operating expenses by around $1.5 billion by 2027, Moderna CEO Stéphane Bancel said Thursday in an internal letter to employees. Moderna has been relying on its new mRNA vaccines, including its experimental COVID-flu combination shot, to offset declining sales of its COVID-19 vaccine and respiratory syncytial virus vaccine, Reuters reported. Moderna Ceo Says Covid Moving Into Endemic Stage The company, based in Cambridge, Massachusetts, has made efforts to avoid job cuts, including scaling down research and development, lowering manufacturing expenses and renegotiating supplier contracts, Bancel said. "This decision was not made lightly," he said. "It impacts teammates and friends who have dedicated themselves to our mission and who have helped build Moderna. I want to express, on behalf of the entire Executive Committee and on behalf of patients you have served, our deepest thanks for everything you have contributed." Read On The Fox Business App Moderna Sues Pfizer, Biontech Over Covid Vaccine, Alleges Patent Infringement Earlier this year, the company estimated its annual operating costs for 2027 to be between $4.7 billion and $5 billion, according to Reuters. Moderna Looks To Inspire 'Revolution' In Cancer Treatments: Ceo The company's stock is down more than 90% from what it was during the COVID-19 pandemic, according to Reuters. In the letter, Bancel noted that Moderna has three approved products and could have as many as eight more product approvals in the next three years. He also said he would provide employees with more details about the layoffs at a company meeting Friday. "We are sharpening our focus, becoming leaner, and staying ambitious in oncology, rare diseases and latent viruses," Bancel said. Moderna did not immediately respond to FOX Business' request for article source: Moderna plans to slash 10% of workforce as COVID shot sales slow 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
Fast Company
31-07-2025
- Business
- Fast Company
Why Moderna is laying off 10% of its workforce—and does RFK Jr. have anything to do with it?
BY Listen to this Article More info 0:00 / 3:30 Biotech giant Moderna announced it will lay off 10% of its workforce in a move CEO Stéphane Bancel called 'a difficult decision but necessary step forward,' in an internal memo sent to employees today. The move sent Moderna's stock price (NASDAQ: MRNA) tumbling over 5% through Thursday morning, and signals a further contraction of the once fast-growing business. 'I know this is a difficult moment for the company,' Bancel said in the memo announcing layoffs. 'We all feel a range of emotions whenever we have to say goodbye to colleagues.' Moderna declined to comment on which areas of the business would be most impacted by the workforce reduction. Moderna became a household name during the COVID-19 pandemic, when its mRNA vaccine became the second authorized for emergency use against COVID-19. At the time, it quickly scaled up its manufacturing capabilities and workforce to supply billions of vaccines in America and around the world. Since the pandemic, however, the biotech firm has struggled to maintain the size of its operation. In 2024, Moderna's annual revenue was less than half of what it was in 2023—$3.2 billion compared to $6.8 billion. This year, the company is seeing further decline. It brought in just $108 million in the first quarter, 35% less than the first quarter of 2024, as it faces mounting challenges from the federal government. Under Robert F. Kennedy Jr., the new secretary of the Department of Health and Human Services (HHS) and proponent of the anti-vaxxer movement, the HHS has taken aim at the mRNA vaccines Moderna specializes in. These vaccines work by introducing a piece of mRNA, a single-stranded molecule similar to DNA, that instructs cells on how to make a harmless version of a virus. The body then makes antibodies, proteins used by the immune system to annihilate harmful substances, that can fight off the real virus. Although mRNA vaccines are widely used, safe, and effective, those skeptical of the innovation have driven lawmakers to curtail the companies behind them. In May, the CDC revised its guidelines for COVID-19 vaccination and the FDA made it more difficult for vaccines to be approved. The second Trump administration also cancelled a $766 million contract with Moderna to develop a vaccine against influenza viruses, such as H5N1 bird flu—even as the company announced positive early results. In response to uncertainty in the vaccine market and decreasing revenue, earlier this year, the company committed itself to reducing annual operating costs by $1.5 billion by 2027. The layoffs today are the next step in achieving that reduction, following a significant drop in R&D spending and limiting supplier and manufacturing costs. Despite slimming down the business, Bancel said the company's mission will remain unchanged and notes there are still opportunities to expand Moderna's product line. 'The future of Moderna is bright,' Bancel said in a memo to employees. 'We are sharpening our focus, becoming leaner, and staying ambitious in oncology, rare diseases, and latent viruses.' Moderna is expected to report its Q2 financial results tomorrow.
