Moderna Restructures R&D Strategy, Anticipates $1.1B Savings

2 min read | September 12, 2024 04:59 PM PDT | By Team Kalkine Media

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Moderna Restructures R&D Strategy, Anticipates $1.1B Savings — Image source: Shutterstock

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Headlines

- Moderna plans to streamline its research and development efforts, focusing on obtaining FDA approval for 10 key products.

- The company expects to reduce R&D expenses by $1.1 billion by 2027, with significant cost-cutting measures starting immediately.

- Moderna anticipates FDA approval for 10 new products in the next three years, with a revenue forecast of $6 billion by 2028.

Moderna (NASDAQ:MRNA) is shifting its R&D strategy to achieve substantial cost savings. The company has announced plans to reduce its research and development spending by $1.1 billion by 2027. This strategic realignment aims to focus on the FDA approval of 10 significant products, including treatments for RSV, cancer, and a combined COVID and flu vaccine.

Currently, Moderna's R&D budget is projected at $4.8 billion for the fiscal year. The company plans to lower this expenditure to between $3.6 billion and $3.8 billion by 2027. This adjustment reflects a commitment to advancing its pipeline of late-stage products while managing overall costs.

Moderna is working on five vaccines for respiratory illnesses with promising phase 3 trial data. The company plans to submit at least three of these vaccines for FDA approval by the year's end. Additionally, Moderna is developing five vaccines for various cancers and rare diseases, which could gain approval over the coming years.

The company projects revenue of $2.5 billion to $3.5 billion for fiscal 2025, slightly below earlier forecasts. Moderna aims to achieve a revenue milestone of $6 billion by 2028, aligning with its long-term goals of operational break-even and expanded product offerings.

Shares of Moderna experienced a notable decrease in pre-market trading following this announcement.

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