Moderna to reduce expenses by $1.1 billion and introduce 10 new products by 2027 as it plans for the post-Covid era.

• Moderna announced plans to reduce expenses by $1.1 billion by 2027 as it adjusts its strategy following the decline of its Covid business.
• The biotech company said it expects 10 new product approvals through 2027.
• Moderna is also prioritizing certain parts of its pipeline by pausing work on some products and scrapping others.

The company announced plans to reduce expenses by $1.1 billion by 2027 and gain approval for new products as it moves forward after the decline of its Covid business on Thursday.

While Moderna aims to "pace ourselves" in new research and development spending, it will pause work on some products in its pipeline and scrap others.

According to a release, the company plans to reduce its R&D spending from an expected $4.8 billion at the end of this year to a range of $3.6 billion to $3.8 billion in 2027.

Moderna CEO Stephane Bancel informed CNBC that the company will pause its research on a category of viruses that can cause serious health complications later in patients' lives, as some studies will be sunsetted.

On Thursday, Moderna disclosed positive late-stage trial results for its vaccine against respiratory syncytial virus in high-risk adults aged 18 to 59, and plans to submit an application for approval in that age group this year. Additionally, the company revealed positive data on its experimental standalone flu shot for adults aged 65 and older.

During its annual research and development day investor event in New York on Thursday, the company revealed updates about its product pipeline and long-term business plans. This event took place four months after U.S. regulators approved Moderna's RSV vaccine for seniors, making it the company's second commercially available product following its Covid vaccine.

The company announced that it has five respiratory shots with positive phase three results and plans to submit three of them for approval this year, including Moderna's combination shot targeting Covid and the flu, which it expects to file for approval in the U.S. this year, as well as a new and more effective version of its Covid shot.

According to Moderna's release, the company has five non-respiratory products that could be approved by 2027, targeting cancer, latent viruses, and rare diseases.

The company anticipates that its 2025 revenue will fall between $2.5 billion and $3.5 billion. In the years 2026 to 2028, Moderna expects to achieve a growth rate of more than 25% annually as new products are launched.

The rate of success for developing drugs from phase one to phase three is "six times higher" at the company compared to the rest of the biotech and pharmaceutical industry, according to Bancel.

The team's achievement of leaving us with a lot of working drugs is remarkable, and therefore, we need to pace ourselves in terms of R&D investment, he told CNBC.

What's in Moderna's pipeline?

New data on Moderna's RSV vaccine, mRESVIA, was presented, showing it is cleared in both the U.S. and European Union for adults aged 60 and above.

Moderna announced that the shot met all of the main efficacy goals in an ongoing phase three study on adults ages 18 to 59 who are at increased risk of getting severely sick from the virus, with no safety concerns observed.

Currently, there are no RSV shots approved for younger, high-risk adults, such as those with weakened immune systems or underlying chronic conditions like asthma and diabetes. Moderna's main rivals in the RSV space, and , are also seeking an expanded approval for this age group.

Moderna plans to use a "priority review voucher" when filing for approval for people ages 18 to 59, hoping to reduce the time it takes for the Food and Drug Administration to review the product to six months instead of 10 months. The company hopes to get the agency's clearance for mRESVIA in time for the RSV season in 2025.

"We are doing it to remain competitive in the marketplace because if you are a large retail pharmacy, you want your product to be accessible to all customers who visit your store," Bancel stated.

The company has decided to halt the development of its RSV vaccine for infants under 2 years old due to "emerging clinical data."

In a recent phase three trial, Moderna's experimental standalone flu vaccine, mRNA-1010, generated a higher immune response against the virus compared to an existing flu shot. Additionally, the vaccine has shown "consistently acceptable safety and tolerability" in three late-stage trials, Moderna stated.

Moderna plans to commence a phase three trial for its norovirus vaccine "imminently," with Bancel stating that the company could complete the study within a year and submit for approval immediately if the data is favorable.

"This product, which could be launched two years from now, is great because there is currently nothing available to treat norovirus," he said. "Healthcare professionals are at a high risk of contracting norovirus from their patients."

Moderna is collaborating with Merck to create a customized cancer vaccine that is being tested alongside Keytruda in individuals with various types of the illness.

The jab is being studied in a phase three trial in patients with deadly skin cancer, and the companies are discussing an approval with regulators based on data from a mid-stage study.

Moderna stated that the FDA has not been supportive of an accelerated approval of the shot based on its existing data, which refers to an FDA designation that clears drugs faster if they fill an unmet medical need for serious conditions.

Bancel stated that the company will continue to engage in discussions with regulators while also increasing the amount of data generated.