Moderna (MRNA) Q2 2025 Earnings Call August 01, 2025 08:00 AM ET Company ParticipantsLavina Talukdar - Senior VP & Head of Investor RelationsStéphane Bancel - CEO & DirectorJamey Mock - CFOStephen Hoge - PresidentSalveen Richter - Biotechnology Equity ResearchEllie Merle - ED - Biotech Equity ResearchMike Yee - Managing DirectorGreg Wiessner - Biotech Equity Research AssociateGena Huidong Wang - Managing Director, Biotech Equity ResearchConference Call ParticipantsNone - AnalystCourtney Breen - Senior Resea ...

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenues of $100 million and a net loss of $800 million, reflecting the seasonal nature of its respiratory vaccine business [6] - Cash and investments at the end of the quarter stood at $7.5 billion, down from $8.4 billion at the end of Q1 2025 [15] - The company achieved a 35% reduction in combined cost of sales, R&D, and SG&A compared to 2024, with cash operating expenses reduced by $581 million year-over-year, representing a 40% reduction [7][10] Business Line Data and Key Metrics Changes - Net product sales for the quarter were $114 million, primarily driven by COVID vaccine sales, with a 38% decline compared to 2024 [12] - R&D expenses were $700 million, down 43% year-over-year, attributed to the wind down of respiratory trials and lower clinical manufacturing costs [13] - SG&A expenses were $230 million, reflecting a 14% year-over-year decrease due to broad-based cost reductions [14] Market Data and Key Metrics Changes - The U.S. accounted for approximately 80% of total sales, with international markets contributing the remainder [12] - The company updated its 2025 projected revenue range to $1.5 billion to $2.2 billion, reflecting a $300 million reduction at the high end due to a timing shift of UK COVID shipments [16][17] Company Strategy and Development Direction - The company is focused on three strategic priorities: driving use of commercial products, advancing its pipeline, and executing with financial discipline [9][41] - The company aims to secure up to 10 product approvals targeting an addressable market exceeding $30 billion [41] - A workforce reduction of approximately 10% was announced to align the cost structure with current business conditions while sustaining investments in the mRNA pipeline [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash breakeven by 2028, supported by ongoing cost reduction initiatives [28][43] - The company is optimistic about the upcoming approvals for seasonal flu and flu plus COVID combination vaccines, as well as the readout of CMV Phase III efficacy data later this year [45][46] Other Important Information - The UK Court of Appeal upheld the validity of Moderna's EP949 patent, which is infringed by Pfizer and BioNTech, reinforcing the company's commitment to enforce its patent rights globally [11] - The company is leveraging AI tools to enhance operational efficiency, with 100% of knowledge workers actively using ChatGPT [43] Q&A Session Summary Question: Context for CMV changes and data cadence for neoantigen therapy - Management explained the rationale for adding secondary endpoints to the CMV study to enhance the analysis and protect the study's integrity, with results expected in the fall [50][51][87] - The cadence of results for the individualized neoantigen therapy is anticipated to be consistent over the next year, with several studies expected to read out [54] Question: Pricing expectations for COVID vaccine - Management indicated that pricing discussions are complete, with a revenue range of $1 billion to $1.5 billion for U.S. product sales, factoring in competitive pressures and vaccination rates [57][60] Question: Balancing R&D investments and cost-cutting - Management emphasized the importance of investing in the late-stage pipeline while also reducing costs, with a focus on diversifying the product portfolio beyond seasonal products [79][83] Question: Employee headcount reduction context - The company clarified that the headcount reduction is part of a broader strategy to enhance efficiency while continuing to invest in key areas [90]