Moderna Shares Tumble As R&D Cuts Follow COVID Business Slump

Moderna faces an uncertain future as COVID-19 vaccine sales decline. To address this, the company plans to cut expenses by $1.1 billion by 2027, prioritizing approvals for ten products over the next three years. Moderna expects to submit approvals for a next-generation COVID vaccine and a flu/COVID combination vaccine in 2024. Positive Phase 3 results have been announced for Moderna's RSV vaccine and standalone flu vaccine. The company is expanding its portfolio beyond respiratory vaccines into oncology, rare diseases, and first-in-class vaccines. Despite the cost cuts, Moderna does not anticipate profitability until 2026. Moderna's stock has dropped significantly, with a steady short position building. Analysts express concerns about Moderna's reduced sales outlook, which may not account for ongoing vaccine fatigue and competition. The company's executives believe another pandemic would resolve its uncertainties.