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Pharma & Biotech

Moderna shares tank after announcing $1.1bn cost-cutting measures

US pharmaceuticals giant Moderna Inc (NASDAQ:MRNA, ETR:0QF) shares tanked more than 17% on Thursday after announcing a $1.2 billion cost-cutting plan in its research and development department.

Moderna successfully commercialised its Covid-19 vaccine at the height of the pandemic leading to an all-time high valuation in September 2021.

But its star has fallen off considerably since then amid plummeting demand for the vaccine.

The company slashed its full-year sales forecast for respiratory vaccines by up to $1 billion in August.

Now the group is hoping to bring R&D expenses down from $4.8 billion today to between $3.6 and 3.8 billion in 2027.

Now valued at around $25.2 billion, Moderna is worth just 15% of what it was at its heady pandemic-era heights.