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Moderna Charts a New Course: $1.1 Billion in Cost Cuts and 10 Product Launches by 2027
In a significant strategic shift, Moderna Therapeutics has outlined plans to reduce expenses by $1.1 billion by 2027, while aiming to secure approvals for ten new products within the same timeframe. This move comes as the biotechnology firm adapts to the rapid decline of its Covid-related business.
Cost-Cutting Measures
Moderna intends to streamline its research and development budget, targeting a reduction to between $3.6 billion and $3.8 billion by 2027. This marks a significant decrease from the anticipated $4.8 billion by the end of this year. CEO Stephane Bancel emphasized that the company will "pace ourselves" regarding new research and development expenditures, which includes halting progress on certain projects and discontinuing others.
Product Pipeline
Moderna's product pipeline remains robust, with five respiratory vaccines showing promising phase three results. The company plans to submit three of these for approval this year, including a combination vaccine targeting both Covid and influenza. Additionally, Moderna has five non-respiratory projects in the areas of cancer, latent viruses, and rare diseases that may receive approval by 2027.
RSV Vaccine Progress
The company reported encouraging results from late-stage trials of its vaccine targeting respiratory syncytial virus (RSV) in high-risk adults aged 18 to 59. Moderna plans to seek approval for this demographic later this year, utilizing a 'priority review voucher' to expedite the FDA's review process to six months instead of the standard ten months.
Financial Projections
Moderna forecasts its revenue for 2025 to range between $2.5 billion and $3 billion. The company anticipates a compounded annual growth rate exceeding 25% from 2022 to 2028 as it introduces new products.
Success Rate
CEO Stephane Bancel highlighted Moderna's success rate in advancing drugs from phase one to phase three trials, which is "six times higher" than the average in the biotech and pharmaceutical sectors. This achievement leaves the company with numerous effective drugs, necessitating careful management of R&D investments.
Original Article: https://www.cnbc.com/2024/09/12/moderna-rd-day-1-billion-in-cost-cuts-10-product-launches-planned.html
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