This article was originally published by Tyler Durden at ZeroHedge.
Moderna’s post-pandemic future remains highly uncertain. The company revealed new plans to slash $1.1 billion in expenses by 2027 to steer toward profitability. This comes a little over a month after investors were left disappointed following management’s outlook cut on slumping vaccine sales amid a sliding Covid business.
“Moderna’s broad clinical success and recent commercial challenges necessitate a more selective and paced approach to its research and development investment. Through portfolio prioritization and cost efficiencies, the company expects to reduce annual research and development expense by approximately $1.1 billion starting in 2027,” the Cambridge, Massachusetts-based company wrote in a press release.
Here are the key initiatives management outlined:
Focuses on ten product approvals through 2027 Expects to submit next-generation COVID vaccine for approval in 2024 Expects to submit flu/COVID combination vaccine for approval in 2024 Announces positive Phase 3 results for its RSV vaccine for high-risk adults aged 18 to 59; expects to submit sBLA for US approval in 2024 Announces positive Phase 3 results for its standalone flu vaccine for adults aged 65 and older relative to high-dose licensed comparator Announces norovirus vaccine advances into Phase 3 study, bringing the total of non-respiratory pivotal stage programs to five, across oncology, rare diseases, and first-in-class vaccines Implements portfolio prioritization and cost efficiencies to reduce R&D expense by $1.1 billion, from $4.8 billion in 2024E to $3.6-3.8 billion in 2027 Updates and extends financial framework through 2028
In response to a sliding Covid business, Moderna said it would “expand its commercial portfolio into oncology, rare diseases, and first-in-class non-respiratory vaccines. The company expects this strategy to yield 10 product approvals over the next three years.”
“We are still dealing with a market of uncertainty,” Moderna CFO Jamey Mock said in an interview, which Bloomberg quoted.
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