Moderna stock drops 92%, revenue declines significantly

Moderna became a well-known biotech company after its COVID-19 vaccine played a crucial role in fighting the pandemic in late 2020. The company saw record sales and profits in 2022. However, demand for COVID vaccinations has dropped, causing a significant decline in the company’s business and stock value. Moderna's stock is down 92% from its peak. One important aspect of Moderna is its innovation in messenger RNA (mRNA) technology. This technology could change medicine by helping the body fight diseases. The success of their COVID vaccine is prompting Moderna to explore uses for other illnesses like influenza, cancer, and rare diseases. Despite its promising technology, Moderna is facing tough times. The company’s revenue fell sharply from $19.3 billion in 2022 to just $3.2 billion in 2024, with expectations for even lower sales in 2025. Challenges include reduced need for COVID-19 boosters, competition, and the end of government funding for vaccinations. Moderna's new respiratory syncytial virus (RSV) vaccine has also struggled. Approved in 2024, it has seen slow adoption and generated only $25 million in sales last year, leading to a net loss of $3.6 billion. On a positive note, Moderna still has a strong pipeline of potential products. The company aims to gain approval for ten new products by 2027, including vaccines for norovirus and personalized cancer treatments. With $9.5 billion in cash, Moderna is well-positioned to pursue these goals. Despite its challenges and recent stock decline, Moderna’s future potential in mRNA technology makes it a company to watch in the coming years. While it may not be time to invest heavily, it’s worth keeping an eye on their progress.