Moderna ( (MRNA) ) has fallen by -18.59%. Read on to learn why.
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Moderna has experienced a significant decline in its stock price, dropping by 18.59% over the past week. This downturn follows the company’s announcement of a 41.1% year-over-year decrease in sales for the second quarter, despite beating earnings expectations. The reduction in revenue guidance for the full year, attributed to the timing of shipments, further dampened investor sentiment. The decline in sales was primarily driven by lower demand for its Spikevax COVID vaccine, which is expected to see more demand in the latter half of the year as it becomes a seasonal product.
In response to the challenging financial environment, Moderna has announced plans to cut approximately 10% of its global workforce by the end of the year. This move is part of a broader strategy to reduce operating expenses by $1.5 billion annually by 2027. Despite these cost-cutting measures, Moderna remains optimistic about its future, citing recent FDA approvals and ongoing developments in its oncology and infectious disease programs as potential growth drivers.
Looking ahead, Moderna is focusing on its pipeline of new products, including a personalized cancer therapy developed in collaboration with Merck. The company is also adjusting its research and development expenses and expects to end the year with approximately $6 billion in cash and investments. While the current stock consensus is a ‘Hold,’ analysts see potential upside in Moderna’s stock price, driven by its strategic initiatives and product developments.