Moderna has cut R&D expenditure and their shares has dropped 17%, maybe throw a few billion USD M&A at IMU for a new path to profitability. The big boys might bite.
"(Bloomberg) — Moderna Inc. (
MRNA) aims to reduce its research and development budget by about 20% over the next three years as the biotech tries to find a path to profitability following disappointing vaccine sales.
The company is discontinuing five programs in its pipeline and slowing some late-stage studies of treatments for latent and rare diseases to achieve the $1.1 billion cut from its annual R&D budget by 2027, according to a statement Thursday.
The plan may appease investors who want to see the company avoid further losses. In a recent note, Jefferies analyst Michael Yee said Moderna needed to cut as much as $1 billion in expenses “to regain any investor confidence or credibility on profitability.”
Shares dropped by 17% in trading in New York on Thursday. Through Wednesday’s close, Moderna’s shares have dropped about 20% this year."
