In a devastating blow to investor confidence, Moderna’s shares experienced a dramatic decline of up to 22 per cent on Monday following disappointing sales forecasts from the US biotech giant.
The Boston-headquartered company revised its 2024 sales projections downward to $1.5bn-$2.5bn, a significant reduction from its previous forecast of $2.5bn-$3.5bn. This adjustment fell notably below analyst expectations of $2.4bn-$2.9bn. The company also indicated anticipated revenues of $3bn-$3.1bn for 2024, hovering at the lower end of earlier guidance.
Moderna’s stock value plunged to $31.94, marking a staggering 90 per cent decrease from its September 2021 peak during the Covid-19 vaccine rollout. While the shares partially recovered, they concluded trading down 16.8 per cent at $35.15.
Chief Financial Officer Jamey Mock acknowledged the challenges in forecasting the Covid-19 market, citing the unprecedented transition from pandemic to endemic status. Mock expressed optimism about market stabilisation, suggesting demand patterns may become more predictable moving forward.
The company has announced enhanced cost-reduction measures, targeting expense cuts of $1bn in 2025 and £500m in 2026. Chief Executive Stéphane Bancel emphasised the company’s commitment to sales growth, new product development, and operational efficiency.
Adding to investor concerns, Moderna’s cytomegalovirus vaccine trial failed to meet early efficacy criteria, whilst uncertainty surrounds the prospects of their combination Covid-19 and flu vaccine. Market analysts at Leerink Partners have raised concerns about potential future equity dilution as profitability appears increasingly distant.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.