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Yahoo
7 hours ago
- Business
- Yahoo
Moderna to lay of 10% of workforce in ‘difficult but necessary step'
This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter. Moderna said Thursday it plans to lay off 10% of its workforce, or more than 800 employees, as part of an ongoing effort to cut expenses amid slowing vaccine sales. Moderna first announced last September a plan to lower $1.5 billion in annual operating expenses by 2027, largely by trimming research spending. The company planned to hit that mark without cutting into its workforce, with a spokesperson at the time calling the restructuring a 'financial change' that wouldn't involve layoffs. In a Thursday memo to employees, CEO Stéphane Bancel wrote that the company has made 'significant progress' towards that goal, in part by renegotiating supply deals and lowering manufacturing costs. But while 'every effort was made to avoid affecting jobs,' the company now has to reduce its headcount, too. Bancel didn't detail which types of roles will be affected, but revealed the company's global workforce — which totaled more than 5,800 people in 18 countries at the end of last year — will be cut to less than 5,000. "Reshaping our operating structure and aligning our cost structure to the realities of our business are essential to remain focused and financially disciplined, while continuing to invest in our science on the path to 2027,' Bancel wrote. Moderna rose to stardom during the COVID-19 pandemic, bringing one of the first coronavirus shots to market and earning billions of dollars in product sales as a result. But its financial fortunes have reversed since then due to declining demand for COVID-19 shots and slow uptake for an RSV vaccine it's also brought to market. Moderna has revised its revenue guidance multiple times amid the slowdown, too, eroding confidence in its management team and leading analysts to long expect expense cuts and layoffs. The job cuts announced Thursday are 'necessary to right-size the company's operational footprint to offset continued vaccine revenue decline,' Leerink Partners analyst Mani Foroohar wrote in a note to clients. The change in U.S. public health leadership this year has hurt Moderna, too. The Food and Drug Administration has implemented a stricter approval framework for COVID shots that's resulted in narrower-than-expected clearances. Health and Human Services Secretary Robert F. Kennedy Jr. has also recast an influential vaccine committee with some members skeptical of the messenger RNA shots Moderna is known for. HHS terminated a contract with Moderna to develop mRNA vaccines for bird flu as well. Moderna is counting on newer shots it's developing — among them a cancer vaccine being co-developed with Merck & Co. and a combination COVID and influenza vaccine — to help change its outlook. 'Our mission remains unchanged. With three approved products and the potential for up to eight more approvals in the next three years, the future of Moderna is bright. We are sharpening our focus, becoming leaner, and staying ambitious in oncology, rare diseases and latent viruses,' Bancel said in the memo. Moderna will report its latest quarterly results on Friday. 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
Boston Globe
10 hours ago
- Business
- Boston Globe
Moderna lays off 500 in latest cost-cutting move.
'Every effort was made to avoid affecting jobs,' but cuts were necessary so that Moderna could align its 'cost structure to the realities of our business,' Bancel wrote. 'I know this is a difficult moment for the company. We all feel a range of emotions whenever we have to say goodbye to colleagues.' Related : Advertisement By the end of the year, Moderna expects to employ fewer than 5,000 workers globally, down from 5,800 workers at the end of 2024, the company said. Moderna's core vaccine business has faced numerous challenges in the post-Covid era. Demand and sales of its Covid vaccines have declined, and while the Food and Drug Administration has approved updated jabs, it's done so with restrictions. Moderna's launch of an RSV vaccine has been more difficult than expected due to competition.
Business Times
11 hours ago
- Business
- Business Times
Moderna to cut 10% of staff to offset slowing Covid business
[CAMBRIDGE, MASSACHUSETTS] Moderna is cutting about 10 per cent of its workforce, part of an effort by the struggling biotech company to reduce spending as sales of its Covid vaccine decline. In a note to employees, chief executive officer Stéphane Bancel said the company was 'aligning our cost structure to the realities of our business.' The layoffs will affect hundreds of employees globally, though Bancel did not disclose in which areas of the business. Moderna expects to have fewer than 5,000 employees by the end of the year, he said. It had about 5,800 full-time employees at the end of last year, according to a company filing. Moderna is cutting costs as revenue from its Covid vaccine shrinks and the company faces new challenges from the leadership of Health and Human Services Secretary Robert F Kennedy Jr, a vaccine critic. Under Kennedy, US health officials have rolled back long-standing recommendations regarding Covid shots for children and pregnant women, approved Moderna's updated Covid shot for a narrower group of people and terminated the company's contract to develop bird flu vaccines. Meanwhile Moderna's second product, a vaccine for RSV, has not gained traction. With sales falling short of investors' expectations, Moderna last year pushed back its target to break even by two years, to 2028 from 2026. The company has said it plans to reduce annual operating expenses by about US$1.5 billion by 2027. Moderna is doing that by renegotiating supplier agreements, reducing manufacturing costs and lowering spending on research and development. BLOOMBERG
CNBC
11 hours ago
- Business
- CNBC
Pandemic darlings Moderna, BioNTech are now on two different paths
The Covid-19 pandemic turned Moderna and BioNTech into household names almost overnight. Now the two companies are on different paths. Both Moderna and BioNTech helped pioneer mRNA, or messenger RNA, technology. Moderna staked its entire identity around mRNA, while BioNTech saw it as one piece of a broader portfolio focused on immunology and oncology. The pandemic gave both companies a chance to prove mRNA's promise of using the body's own immune system to protect against viruses or treat diseases. Covid vaccines have generated roughly $45 billion in sales for each company, earning them each about $20 billion since their rollout in late 2020. But despite parallel booms after the pandemic, the vaccine makers have since taken their businesses in different directions — and Wall Street has noticed. The two companies have spent their Covid vaccine windfall differently: Moderna doubled down on its mRNA pipeline, while BioNTech used the money to do deals and diversify, including into one of the hottest emerging areas of cancer drugs. Today, Moderna has about $8.4 billion in cash; the German-based BioNTech has €15.9 billion (or $18.2 billion). The divergence of the two companies is even more stark in their stock performance. Over the past year, Moderna shares have slid about 72%; BioNTech shares have gained nearly 29%. "Just their name was made based off the pandemic and the vaccines that they very quickly brought to people around the world to help get us through that period of time," said Evercore ISI analyst Cory Kasimov. "But the approach they're taking now and the outlook for these two companies is distinctly different at this point." Investors will get a fresh look at both companies' performance as they post quarterly results in the coming days. Moderna is set to report Friday morning, followed by BioNTech on Monday morning. Moderna used its Covid cash to build out its mRNA portfolio, particularly vaccines. It invested in shots for flu, RSV and lesser-known viruses like cytomegalovirus and norovirus. "From our perspective, the pandemic really showed that the science of what we're doing worked, and the natural sort of response to that was to continue down that path and do more," said Moderna President Stephen Hoge. Funding such a large pipeline wasn't cheap. The company has started slashing expenses as sales of its Covid vaccine slide and its RSV vaccine struggles to find a foothold. But the clock is running, said Leerink analyst Mani Foroohar. "We're moving into a time where being a vaccine company is going to be more expensive, tedious and onerous," Foroohar said, citing changes at the Food and Drug Administration under the leadership of Health and Human Services Secretary Robert F. Kennedy Jr., who has expressed skepticism about vaccines. Foroohar in 2022 pointed out what he saw as a Shakespearean tragic flaw in Moderna's business model. That shortcoming, in his view, is that Moderna scaled its pipeline assuming mRNA technology would be the tool for all problems instead of a solution for some problems. Hoge said Moderna's "really good at making mRNA medicines" and decided to focus on doing that. "The reality is that we think over the last 10 years, that focus has actually made us successful, and in the pandemic, it certainly had a big impact and obviously was something that sets us up for the more diverse pipeline we have right now," Hoge said. "So we recognize that we may be going through some cycles, but we're pretty confident in the long-term trajectory we're on, and we're looking forward over the years ahead to showing with all these additional medicines what we're really capable of." Meanwhile, BioNTech decided to use the proceeds from its Covid vaccine to diversify. Out of the limelight as partner Pfizer took the lead on selling the companies' shot, BioNTech expanded into promising new cancer technologies. Most importantly, it acquired a bispecific antibody targeting the proteins PD-L1 and VEG-F. That technology promises to build on – and possibly best – the success that Merck has found with Keytruda, a cancer drug with nearly $30 billion in sales last year alone. That thesis still needs to be proven in large, global clinical trials, but BioNTech is already seeing that deal pay off. Bristol Myers Squibb in June announced it would pay up to $11 billion to partner with BioNTech to codevelop the experimental drug, which BioNTech acquired for a fraction of that. BioNTech in 2023 initially paid Biotheus $55 million up front to license the drug outside China before acquiring the company outright earlier this year for up to $1 billion. "[BioNTech] found an asset, they developed it, and then they got a pharma partner, it's like a dream," said BMO analyst Evan David Seigerman. "So they're really strategic in that, and I think they're adding a lot of diversification, which makes the story a lot less risky if you're just focused on mRNA, vaccines and Covid, and that's super risky, in my view." At the same time, hopes are high that BioNTech's bispecific antibody drug will work, meaning any disappointment ahead could hurt the stock. Investors are watching forthcoming Phase 3 trial results from Summit Therapeutics, which is testing a similar drug for lung cancer. Those data could help — or hurt — BioNTech's stock while it awaits data from its own studies, which could take until 2028. For Moderna, investors want to see if sales of its Covid and RSV vaccines can rebound. The company is also seeking FDA approval for an mRNA flu shot. But at this point, the most intense focus is on Moderna's Phase 3 trial for a personalized cancer treatment for melanoma, said RBC Capital Markets analyst Luca Issi. Moderna may be able to share the first interim data as soon as next year, Hoge said, though the company can't promise an exact date since it's an event-driven study. That means enough people in the trial need to relapse before Moderna can analyze whether its treatment kept cancer from returning longer. If the treatment succeeds, it could launch in 2027 or 2028, Hoge said. That leaves Moderna largely dependent on its vaccines until then. An ongoing patent dispute over Moderna's Covid-19 shot could also eat into the company's cash, analysts say, adding they expect the legal proceedings to play out next year. Time will tell whether the divergent strategies win over Wall Street long term.
The Advertiser
20 hours ago
- Health
- The Advertiser
One person dead amid legionnaires' outbreak in NSW suburb
Seven residents in one NSW suburb have been diagnosed with Legionnaires' disease. The outbreak in Potts Point, in Sydney's eastern suburbs, has led to all seven hospitalised with the disease. This included a man in his eighties, who became unwell in late June and died from the infection. Five of the other patients have returned home and one is recovering in the hospital. None of the patients are known to each other; however, they may have been exposed to a common source of infection in the area, NSW Health said. South Eastern Sydney Local Health District Public Health Unit director Dr Vicky Sheppeard said that while no Legionella bacteria have been found so far, investigations are continuing. "The District has requested building owners disinfect their cooling towers on two occasions since the investigation began in June," Dr Sheppeard said. READ MORE: Inside aged care: what our elderly Australians are eating may shock you "People who have recently been in Potts Point and develop these symptoms should see their GP or go to a hospital emergency department." Legionnaires' disease is an uncommon infection of the lungs (pneumonia) caused by Legionella bacteria. The bacteria are commonly found in the environment, particularly in water and soil. Infection occurs two to 10 days after a person breathes in the bacteria in contaminated water vapours or dust. READ MORE: How COVID, flu, RSV are tracking this winter - and how to protect yourself Seven residents in one NSW suburb have been diagnosed with Legionnaires' disease. The outbreak in Potts Point, in Sydney's eastern suburbs, has led to all seven hospitalised with the disease. This included a man in his eighties, who became unwell in late June and died from the infection. Five of the other patients have returned home and one is recovering in the hospital. None of the patients are known to each other; however, they may have been exposed to a common source of infection in the area, NSW Health said. South Eastern Sydney Local Health District Public Health Unit director Dr Vicky Sheppeard said that while no Legionella bacteria have been found so far, investigations are continuing. "The District has requested building owners disinfect their cooling towers on two occasions since the investigation began in June," Dr Sheppeard said. READ MORE: Inside aged care: what our elderly Australians are eating may shock you "People who have recently been in Potts Point and develop these symptoms should see their GP or go to a hospital emergency department." Legionnaires' disease is an uncommon infection of the lungs (pneumonia) caused by Legionella bacteria. The bacteria are commonly found in the environment, particularly in water and soil. Infection occurs two to 10 days after a person breathes in the bacteria in contaminated water vapours or dust. READ MORE: How COVID, flu, RSV are tracking this winter - and how to protect yourself Seven residents in one NSW suburb have been diagnosed with Legionnaires' disease. The outbreak in Potts Point, in Sydney's eastern suburbs, has led to all seven hospitalised with the disease. This included a man in his eighties, who became unwell in late June and died from the infection. Five of the other patients have returned home and one is recovering in the hospital. None of the patients are known to each other; however, they may have been exposed to a common source of infection in the area, NSW Health said. South Eastern Sydney Local Health District Public Health Unit director Dr Vicky Sheppeard said that while no Legionella bacteria have been found so far, investigations are continuing. "The District has requested building owners disinfect their cooling towers on two occasions since the investigation began in June," Dr Sheppeard said. READ MORE: Inside aged care: what our elderly Australians are eating may shock you "People who have recently been in Potts Point and develop these symptoms should see their GP or go to a hospital emergency department." Legionnaires' disease is an uncommon infection of the lungs (pneumonia) caused by Legionella bacteria. The bacteria are commonly found in the environment, particularly in water and soil. Infection occurs two to 10 days after a person breathes in the bacteria in contaminated water vapours or dust. READ MORE: How COVID, flu, RSV are tracking this winter - and how to protect yourself Seven residents in one NSW suburb have been diagnosed with Legionnaires' disease. The outbreak in Potts Point, in Sydney's eastern suburbs, has led to all seven hospitalised with the disease. This included a man in his eighties, who became unwell in late June and died from the infection. Five of the other patients have returned home and one is recovering in the hospital. None of the patients are known to each other; however, they may have been exposed to a common source of infection in the area, NSW Health said. South Eastern Sydney Local Health District Public Health Unit director Dr Vicky Sheppeard said that while no Legionella bacteria have been found so far, investigations are continuing. "The District has requested building owners disinfect their cooling towers on two occasions since the investigation began in June," Dr Sheppeard said. READ MORE: Inside aged care: what our elderly Australians are eating may shock you "People who have recently been in Potts Point and develop these symptoms should see their GP or go to a hospital emergency department." Legionnaires' disease is an uncommon infection of the lungs (pneumonia) caused by Legionella bacteria. The bacteria are commonly found in the environment, particularly in water and soil. Infection occurs two to 10 days after a person breathes in the bacteria in contaminated water vapours or dust. READ MORE: How COVID, flu, RSV are tracking this winter - and how to protect yourself
