Moderna Misses Q1 Revenue Expectations, Announces Further Cost Cuts Amid Industry Challenges

Moderna, the mRNA biotech giant, reported first-quarter results that fell short of analyst expectations, prompting the company to announce additional cost-cutting measures. Despite the revenue miss, Moderna remains optimistic about its future pipeline and reaffirmed its ambitious plans for multiple product approvals by 2027.

Q1 Financial Results and Cost-Cutting Measures

Moderna's first-quarter sales dropped to $84 million, missing analyst expectations of $100 million. However, the company managed to beat earnings per share (EPS) forecasts due to aggressive cost-cutting measures that lowered operating expenses. Jefferies analysts described the quarter as "in line," with the EPS beat offsetting the lower-than-expected sales.

In response to the challenging financial landscape, Moderna announced plans to cut an additional $1.5 billion by 2027, adding to billions in cuts already planned. The company's CFO, Jamey Mock, stated that these measures are necessary to maintain financial stability and support ongoing research and development efforts.

Despite the revenue shortfall, Moderna reaffirmed its 2025 financial guidance, projecting revenue between $1.5 billion and $2.5 billion. CEO Stéphane Bancel reiterated the company's ambitious plan to secure 10 product approvals by the end of 2027, highlighting Moderna's commitment to long-term growth and innovation.

Pipeline Updates and Regulatory Interactions

Moderna provided updates on several key pipeline products during its Q1 earnings call. The company's next-generation COVID-19 vaccine, mRNA-1283, is awaiting an FDA decision at the end of this month. Stephen Hoge, Moderna's president, assured investors that interactions with the FDA have been "constructive and positive," with no signs of potential delays in meeting PDUFA dates.

The company also announced that the FDA has lifted a clinical hold on its norovirus program. A Phase III trial for mRNA-1403 had been placed on hold earlier this year following a single report of Guillain-Barré syndrome, a rare neurological disorder that can be triggered by vaccination.

In a strategic shift, Moderna is deprioritizing its flu-COVID combo vaccine mRNA-1083 for adults aged 18 through 49. The vaccine was submitted to the FDA for older adults in 2024, but the company has received feedback that Phase III efficacy data will be required, potentially delaying approval until 2026.

R&D Focus and Clinical Programs

Moderna reported a 19% reduction in R&D spending during the quarter, bringing it down to $856 million. This decrease is attributed to the timing of trials and the winding down of certain programs. However, the company is channeling resources into its individualized neoantigen therapy mRNA-4157, now known as intismeran autogene. This vaccine is currently being tested in Phase III trials for head and neck cancer and melanoma.

The company's COVID-19 franchise continues to face challenges amid changing global vaccine trends. Moderna's COVID-19 vaccine recorded $29 million in U.S. sales for the first quarter, with international sales adding another $55 million. The recently approved respiratory syncytial virus vaccine mRESVIA contributed $2 million in sales for the quarter.

As Moderna navigates a complex pharmaceutical landscape, the company remains focused on its core mRNA technology while adapting to market demands and regulatory requirements. The coming months will be crucial as the company works to deliver on its product approval goals and return to revenue growth.