CAMBRIDGE, MA - Moderna , Inc. (NASDAQ:MRNA) today highlighted key developments in its mRNA pipeline and strategic adjustments aimed at enhancing efficiency and focusing on high-impact programs. The biotechnology company anticipates submitting three respiratory vaccines for regulatory approval in 2024, including next-generation COVID-19 and flu/COVID combination vaccines, as well as an RSV vaccine for high-risk younger adults.
In a shift towards prioritization, Moderna plans to reduce its research and development (R&D) expense by $1.1 billion by 2027, targeting an R&D budget of $3.6-3.8 billion. This decision follows positive Phase 3 results for several vaccine candidates, including its standalone flu vaccine for older adults and its RSV vaccine, mRESVIA, now approved for adults over 60. The company also revealed advancements of its norovirus vaccine into Phase 3 trials, contributing to its non-respiratory pipeline that encompasses oncology and rare diseases.
Moderna's CEO, Stéphane Bancel, emphasized the company's higher-than-average success rate in R&D, stating that its late-stage pipeline could yield up to ten product approvals within the next three years. The company's commitment to portfolio prioritization comes after substantial investments in diversifying its pipeline, particularly during the pandemic with the success of its COVID-19 vaccine, Spikevax®.
The company's financial framework has also been updated, with a projected 2024 R&D expense of approximately $4.8 billion and selling, general, and administrative expenses of around $1.2 billion. Looking forward, Moderna anticipates a compounded annual revenue growth rate of over 25% from 2026 to 2028, driven by new product launches.
Moderna's strategy reflects a broader industry trend of focusing R&D efforts on the most promising and potentially profitable projects. This approach is expected to streamline operations and position the company for sustained growth as it anticipates profitability in its commercial respiratory franchise starting in 2024.
The information reported is based on a press release statement from Moderna, Inc. and includes forward-looking statements regarding the company's pipeline, financial outlook, and strategic focus.
In other recent news, Moderna has made significant strides in its vaccine development. The company's updated COVID-19 vaccine, Spikevax, targeting the JN.1 variant, is nearing approval in the European Union. This follows its recent authorization in the UK, Japan, and Taiwan. Furthermore, Moderna's mRNA-based vaccine, mRESVIA, has received FDA approval.
In the realm of financial analysis, Brookline Capital Markets maintained a Buy rating on Moderna, projecting the COVID-19 vaccines to generate $2.7 billion in sales for Moderna in 2024. HSBC upgraded Moderna's stock from Reduce to Hold due to a dip in COVID-19 vaccine revenue. Piper Sandler also maintained its Overweight rating for Moderna, projecting sales for SpikeVax to reach $2.85 billion.
These developments indicate a positive trajectory for Moderna, although the final European Commission's authorization decision for the updated COVID-19 vaccine is still pending. The company's recent advancements in vaccine development and the analysis from financial firms suggest a dynamic landscape for Moderna's future endeavors.
InvestingPro Insights
As Moderna, Inc. (NASDAQ:MRNA) gears up for significant regulatory submissions in its respiratory vaccine portfolio, the company's financial health and market performance provide a nuanced backdrop. According to InvestingPro data, Moderna's market capitalization stands at $30.56 billion, reflecting the biotech firm's substantial presence in the market. The data also reveals a challenging period for the company, with a revenue decline of 52.6% over the last twelve months as of Q2 2024, which aligns with the analysts' anticipation of a sales decline in the current year. This contraction may be a factor in the company's strategic shift towards prioritizing high-impact programs.
Despite the revenue headwinds, Moderna has demonstrated resilience with a significant return over the last week, suggesting investor confidence in the short term. However, this contrasts with a 46.18% fall in the stock price over the last three months, as per InvestingPro data, which may indicate market volatility and investor uncertainty about the company's longer-term prospects.
InvestingPro Tips highlight that Moderna holds more cash than debt on its balance sheet, which could provide financial flexibility as it navigates through its strategic adjustments. Additionally, with 11 analysts revising their earnings downwards for the upcoming period, it's clear that the market is recalibrating expectations for Moderna's performance.
For readers interested in a deeper dive into Moderna's financials and market analysis, InvestingPro offers additional tips, with a total of 13 tips available, including insights into profitability, stock price volatility, and dividend policies. These additional tips can be accessed at https://www.investing.com/pro/MRNA, providing valuable context for investors as they assess Moderna's strategic moves and market position.
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