Pharmaceutical company Moderna (MRNA) is cutting its research and development (R&D) budget by $1 billion U.S. amid declining sales of its Covid-19 vaccine.
In a corporate update, Moderna’s management team said that they plan to reduce operating expenses a total of $1.1 billion U.S. by 2027, with the bulk of that savings coming from R&D.
The company also said that it expects to have 10 new pharmaceutical products approved by U.S. regulators by the end of 2027.
However, management added that they plan to halt work on some drug candidates and streamline their product pipeline as they adjust their research and development spending.
The company plans to lower its R&D spending to $3.6 billion U.S. to $3.8 billion U.S. in 2027, down from $4.8 billion U.S. this year.
Moderna announced the update during its annual investor day held in New York City, which focuses on the company’s product pipeline.
Earlier this year, the U.S. Food and Drud Administration (FDA) approved Moderna’s RSV vaccine for seniors, giving the company its second commercially available product after its Covid-19 vaccine.
The cut to the company’s R&D spending comes as sales of the Covid-19 vaccine slow considerably.
The company lost $4.7 billion U.S. for all of 2023 compared to a profit of $8.4 billion U.S. in 2022 during the peak of its Covid-19 vaccine sales.
Moderna’s stock has declined 29% this year to trade at $79.51 U.S. per share. The stock peaked at $450 U.S. a share in September 2021.
