11:09 AM EDT, 09/12/2024 (MT Newswires) -- (Updates with the latest stock movement in the headline and the first paragraph.)

Moderna ( MRNA ) shares fell more than 18% in recent Thursday trading after the company said it is reducing its annual R&D expense by about $1.1 billion starting in 2027 in light of "recent commercial challenges."

The company now expects 2025 revenue of $2.5 billion to $3.5 billion. Analysts polled by Capital IQ expect $3.95 billion.

Year-end cash and investments for 2025 are expected to be around $6 billion, Moderna ( MRNA ) said, adding it expects its commercial respiratory franchise to become profitable from this year.

For 2026 to 2028, the company said it expects a compound annual growth rate of over 25%, driven by new product launches.

Moderna ( MRNA ) said it updated its 2024 R&D expenses to about $4.8 billion and expects this to reduce to between $4.2 billion and $4.5 billion for 2025. For the 2026-2028 period, cumulative R&D expenses are projected to be around $11.5 billion, the company added.

Moderna ( MRNA ) said it plans to submit three respiratory vaccines for approval this year, including a next-generation Covid-19 vaccine and an RSV vaccine.

As part of prioritization to cut R&D expenses, Moderna ( MRNA ) said it has discontinued five programs, including Endemic HCoV, RSV for infants, KRAS therapy, Triplet, and Relaxin.

Price: 65.10, Change: -14.42, Percent Change: -18.13