Moderna’s mRNA Strategy Shifts as Q2 Losses Deepen

Just one day after CEO Stéphane Bancel’s sudden announcement of a 10% workforce reduction, Moderna, a leader in mRNA technology, has released Q2 2025 results that fell short of analyst expectations. The company’s revenue declined 41% to $142 million, largely due to a sharp drop in sales of its key mRNA COVID-19 vaccines, including Spikevax and mRESVIA.

The poor performance, which continues a trend of substantial losses since 2022, weighed heavily on the company’s share price, which dropped by 8.9%. During an investor call, Moderna’s CFO Jamey Mock cited uncertainties in vaccination rates and the competitive market for its mRNA products as key factors.

To counter these financial challenges, Moderna is intensifying its cost-cutting efforts. Bancel outlined a $1.5 billion, three-year plan to save money, which includes winding down some new mRNA R&D projects, with a specific focus on respiratory health. The company’s cost-cutting strategies also involve procurement optimization, enhanced manufacturing, and a restructuring that will cut more than 800 positions. Despite the cuts, Bancel noted that Moderna is still actively hiring for over 150 vacancies.

The results, while disappointing, were considered “unsurprising” by Anaelle Tannen, an infectious disease analyst at GlobalData. She anticipates that sales of Moderna’s mRNA-based vaccines will likely increase in the second half of the year as the RSV, flu, and COVID seasons hit the northern hemisphere.

Tannen also highlighted the inherent risks for an mRNA-focused company like Moderna. She explained that while the company is at the “cutting edge of mRNA technology,” it faces a significant “commercialisation gap” because few mRNA products have reached the market. This, coupled with public skepticism about the expedited nature of COVID vaccine trials, poses a challenge to profitability.

Despite these struggles, the broader mRNA therapy market is experiencing robust growth. A report from GlobalData projects that mRNA vaccine sales will increase dramatically, underscoring the long-term potential of the technology despite Moderna’s current short-term difficulties.