Moderna cuts sales forecast on UK revenue delay, shares fall

By Patrick Wingrove and Puyaan Singh

Aug 1 (Reuters) - Moderna MRNA.O trimmed its 2025 revenue forecast on Friday after UK deliveries of some COVID vaccines were deferred to next year, overshadowing lower-than-expected second-quarter loss and sending its shares down 7%.

The revised forecast of between $1.5 billion and $2.2 billion reflects ongoing headwinds for the vaccine maker, which is grappling with slumping demand for COVID-19 shots, a slower-than-expected RSV rollout and regulatory delays in its new product pipeline.

The company is also facing pressure to reduce costs and reestablish growth after pandemic-era profits faded.

Moderna said 40% to 50% of this year's revenue would be recognized in the third quarter, with the remainder expected in the fourth.

"The timing shift is due to the government's use of its fiscal year minimum product purchase for the spring campaign in 2026," finance chief James Mock said, adding it does not impact the total value of Moderna's multiyear contract with the UK.

The company reported quarterly revenue of $142 million, a 41% drop from last year, but still ahead of analyst estimates of $112.9 million, according to LSEG data.

On an adjusted basis, Moderna posted a quarterly loss of $2.13 per share, while analysts on average were expecting a loss of $2.97 per share.

Mock attributed the results to spring COVID booster shot uptake, which was down 11% year-over-year but higher than anticipated and $800 million in cost cuts in the first half of 2025.

"I don't think analysts thought we could get that much (in costs) out of the business," he told Reuters. Mock added that the spring sales boost could signal solid demand for COVID vaccines this autumn.

The sentiment was echoed by company President Steven Hogue, but he noted that "we really won't know until the end of the third quarter."

The Spikevax COVID-19 shot delivered $114 million in sales, beating the expected $87 million for the quarter, but a far cry from its 2022 pandemic peak, when the vaccine brought in $18.4 billion.

Moderna is counting on new mRNA products such as its experimental COVID-flu combo shot to revive growth.

The company said it did not expect a material impact on the cost of sales from the newly introduced tariffs.

Moderna also said it planned to cut operating costs by $400 million in 2025, bringing them down to $5.9 billion to $6.1 billion.