Moderna surprises the Street by predicting a bigger-than-expected sales drop

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Shares of Moderna tumbled in early trading Monday after the vaccine maker predicted a steeper-than-expected sales drop in the new year.

Moderna said it expects 2025 revenue to range between $1.5 billion and $2.5 billion after hitting as much as $3.1 billion last year.

Analysts expect, on average, $2.92 billion in revenue for 2025, according to FactSet.

The company also said it was speeding up and expanding a cost-cutting plan. It expects to cut cash costs by $1 billion in the new year, with additional cuts planned in 2026.

Moderna pulled in most of its revenue last year from its COVID-19 vaccine, Spikevax, which brought in more than $3 billion in sales. Regulators also approved a Moderna vaccine for RSV, or respiratory syncytial virus. The company said that generated minimal sales in the year.

Moderna made its announcement Monday ahead of a presentation at the annual J.P. Morgan Healthcare Conference in San Fransisco. The company will detail its fourth-quarter results on Feb. 14.

Moderna is a couple years removed from pulling in more than $19 billion in sales annually after initial vaccination rounds during the pandemic.

Shares of Cambridge, Massachusetts-based Moderna Inc. fell 19%, or $8.18, to $34.07 in morning trading.