Shift

Drops

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<p class="has-drop-cap">Moderna, Inc. (NASDAQ: MRNA) announced today a <a href="https://www.fiercebiotech.com/biotech/moderna-targets-11b-rd-spending-cut-drops-5-programs-amid-profitability-pressures" target="_blank" aria-label="significant reduction in its research and development budget (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">significant reduction in its research and development budget</a>, sending shockwaves through the biotech industry and causing its stock to plummet. The company, known for its mRNA technology and COVID-19 vaccine, plans to cut $1.1 billion from its R&amp;D spending by 2027 as it grapples with commercial setbacks and a shifting market landscape.</p>
<h3 id="moderna-s-strategic-shift-and-pipeline-adjustments">Moderna’s Strategic Shift and Pipeline Adjustments</h3>
<p>In a move described as a “more selective and paced approach” to drug development, Moderna outlined plans to reduce its annual R&amp;D spending from the current $4.8 billion to between $3.6 billion and $3.8 billion by 2027. <br><br>The company has discontinued five programs, including vaccines for endemic human coronaviruses and a pediatric RSV program, as well as several oncology and cardiovascular candidates. Notably, Moderna has abandoned plans for accelerated approval of its standalone flu vaccine, shifting focus to a flu-COVID combination shot.</p>
<p>Despite these cuts, Moderna maintains ambitious goals, aiming to secure 10 approvals over the next three years. However, the company has pushed back its break-even timeline to 2028, two years later than previously anticipated. This delay, coupled with regulatory hurdles for key prospects like the cancer therapy mRNA-4157, partnered with Merck &amp; Co., has raised concerns about Moderna’s path to profitability.</p>
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<h3 id="moderna-stock-drops-over-17">Moderna Stock Drops Over 17%</h3>
<p>The announcement triggered a sharp decline in <a href="https://tokenist.com/investing/how-to-buy-stocks/" rel="noopener noreferrer nofollow" class="deco-link">Moderna’s stock price</a>, which fell 17.62% to $65.50 as of 10:02 AM EDT. <br><br>This drop reflects investor concerns about the company’s future prospects and ability to diversify beyond its COVID-19 vaccine revenue stream. Moderna’s market capitalization has shrunk to $25.178 billion, with the stock experiencing significant underperformance compared to the broader market.</p>
<p>Moderna’s financial metrics paint a challenging picture, with a profit margin of -116.18% and a return on equity of -40.94%. The company reported $5.05 billion in trailing twelve-month revenue and holds $8.49 billion in cash, but faces pressure to achieve $6 billion in sales to break even by 2028. <br><br>Analyst recommendations remain mixed, with price targets ranging from $58.00 to $310.00, underscoring the uncertainty surrounding Moderna’s future performance.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
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<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/moderna-slashes-rd-budget-stock-plummets-amid-profitability-concerns/">Moderna Slashes R&amp;D Budget, Stock Plummets Amid Profitability Concerns</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Moderna Slashes R&D Budget, Stock Plummets Amid Profitability Concerns

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