Moderna to slash R&D budget, shares fall

Shares in Moderna tumbled 11% in pre-market trading on Thursday, after the US biotech detailed plans to cut its research budget by more than $1bn.

The Nasdaq-listed firm said it would focus on ten product approvals through 2027, including a next-generation Covid vaccine and combined 'flu and Covid jab.

But it will also discontinue five programmes in its pipeline, as it looks to cut research and development expenses by $1.1bn by 2027, to around $3.6bn-$3.8bn.

"Moderna’s broad clinical success and recent commercial challenges necessitate a more selective and paced approach to its R&D investment," the firm said at an annual investor day.

Stephane Bancel, chief executive, said: "Our demonstrated probability of success in R&D has been higher than industry standards at every stage of development.

"The size of our late-stage pipeline combined with the challenge of launching products means we must now focus on delivering these ten products to patients, slow down the pace of new R&D investment and build out commercial business."

Moderna currently has five respiratory vaccines with positive phase 3 results, and expects to submit three for approval this year.

It is forecasting 2025 revenues to come in between $2.5bnd and $3.5bn. For 2026-28, it predicated a compounded annual growth rate of more than 25%, driven by new product launches.