Moderna's Financial Struggles and Strategic Shifts

Moderna reported a significant fourth-quarter loss of $1.1 billion, or $2.91 per share, exceeding analysts' expected loss of $2.68 per share, due to waning demand for its COVID-19 vaccine, Spikevax, and a $238 million charge from a terminated contract. Despite this, Moderna's revenue of $966 million slightly surpassed predictions. The company is transitioning from government contracts to a commercial market, which has led to a sharp decline in COVID-19 vaccine sales. Moderna's strategy involves expanding its product portfolio beyond Spikevax, including its recently FDA-approved RSV vaccine, as it anticipates 2025 revenues between $1.5 billion and $2.5 billion. Cost-cutting measures have been implemented, with plans to reduce expenses by an additional $1 billion in 2025. Analysts and investors remain cautious, given the competitive pressures and the company's reliance on its vaccine pipeline for future growth.