Pharma To Date

Moderna has revealed plans to cut its research and development (R&D) spending by $1.1 billion by 2027, a move driven by declining sales and the need to turn a profit. As the biotech industry faces tightening financial constraints, this decision marks a significant shift in strategy for Moderna, which had previously enjoyed considerable financial flexibility during the COVID-19 vaccine boom.

The company plans to reduce its R&D budget by over 20%, bringing it down to between $3.6 billion and $3.8 billion by 2027. This is in stark contrast to the $4.8 billion it will spend in 2024, illustrating a more selective approach to drug development. Falling sales, particularly in its COVID-19 and respiratory syncytial virus (RSV) vaccines, have intensified the pressure to become more financially sustainable. Pfizer's dominance in the European COVID-19 vaccine market and limitations on RSV vaccine contracts have contributed to Moderna's commercial challenges.

Moderna’s pipeline reprioritization includes the discontinuation of five programs, notably a pediatric RSV vaccine and an oncology candidate, mRNA-2752. The decision to stop these projects stems from emerging clinical data that did not support further advancement. Additionally, the company has abandoned its standalone flu vaccine, mRNA-1010, opting instead to focus on a combination flu-COVID shot, with plans to file for approval this year.

While some programs have been halted, Moderna continues development in critical areas, such as its Merck-partnered cancer vaccine, mRNA-4157. However, regulatory hurdles may delay approval until the company gathers more data from ongoing phase 3 trials.

The company now targets breaking even in 2028, two years later than anticipated, emphasizing the need to streamline operations and deliver new products to market.