Moderna shares plunged to their lowest level in nearly five years on Monday after the biotech company slashed its revenue forecast for this year, noting that last year’s sales would fall at the lower end of its guidance.
The stock has seen a dramatic decline of 93% from its five-year high of $456.76 in August 2021.
The company revised its 2025 revenue projections to a range of US$1.5 billion to $2.5 billion, down from a prior estimate of $2.5 billion to $3.5 billion. Moderna anticipates that most of the revenue will be generated in the second half of the year, primarily from its Covid-19 vaccine and its newly launched respiratory syncytial virus (RSV) vaccine.
For 2024, Moderna forecasts sales between $3 billion and $3.1 billion, slightly narrowing its earlier guidance of $3 billion to $3.5 billion.
Adding to investor concerns, the statement noted that data from a trial of Moderna’s experimental cytomegalovirus (CMV) vaccine failed to meet early efficacy stopping criteria. CMV is a common virus that typically poses little risk to healthy individuals but can present significant health challenges for pregnant women and immunocompromised individuals, according to the Mayo Clinic.
The company’s outlook has raised questions about the sustainability of its growth trajectory, particularly as demand for Covid-related products diminishes. Moderna’s reliance on its new RSV vaccine and other pipeline products to drive future revenue will be closely monitored by investors.
At the time of writing, Moderna (NASDAQ: MRNA) stock was trading at US$35.15, down 16.8% from Friday's close of $42.25. The stock reached a day low of $31.94 and a day high of $35.38. Moderna's market cap stands at $13.53 billion.