UPDATE 3-Moderna cuts 2025 sales forecast by $1 bln on weak vaccine demand, shares tumble

Adds analyst comment in paragraph 3 and graphic, updates share movement to market open in paragraph 1

By Sriparna Roy

Jan 13 (Reuters) - Moderna MRNA.O cut its 2025 sales forecast by $1 billion on Monday, hurt by a slow adoption of its respiratory syncytial virus (RSV) shot and weak demand for COVID-19 vaccines, sending its shares down more than 24% in early trading.

Demand for its COVID vaccine has been waning since the pandemic, while adoption of its RSV shot - its second approved product- has been slower than expected, forcing Moderna to cut costs.

"The bumpy ride gets bumpier," said Bernstein analyst Courtney Breen adding that Moderna may have to aggressively cut research and development costs to reduce investor worries of a need for an equity raise.

Moderna has only two products in the market and has been spending heavily on clinical trials, betting on experimental vaccines to drive growth. But it was forced to start cutting costs in September last year.

CEO Stéphane Bancel said the vaccine maker aims to reduce 2025 cash costs by $1 billion and an additional $500 million in 2026. It expects to end 2025 with cash and investments of about $6 billion.

Shares of the company fell to $32.11, putting Moderna on track to lose more than $3.5 billion in market value, if losses hold. The stock has lost 58% of its value in 2024.

The company recorded 2024 product sales of $3 billion to $3.1 billion, which came at the lower end of its prior forecast as the RSV vaccine contributed to 'minimal sales'.

It expects $1.5 billion to $2.5 billion in annual revenue, mostly in the second half, which is lower than a prior forecast of $2.5 billion to $3.5 billion and below market expectation of $2.95 billion, according to data from LSEG.

Moderna said an independent group determined that a late-stage trial of its cytomegalovirus, or CMV, vaccine did not meet the criteria for early efficacy, but recommended the study should continue.

The company expects to report data this year from the trial of the vaccine for the infection, which commonly causes birth defects.

(Reporting by Sriparna Roy in Bengaluru; Editing by Arun Koyyur)

((Sriparna.Roy@thomsonreuters.com;))