Morgan Stanley expects Moderna shares to trade off after updates, new guidance

Morgan Stanley notes that Moderna provided updates on portfolio prioritization and new guidance ahead of the company’s R&D day, including stating that it plans to break even in 2028 versus 2026 in its prior view on an operating cash cost basis with $6B in revenue. Moderna is reducing its expected R&D investment for 2025-2028 by about 20%, from $20B for the period to $16B, through prioritization. The company also provided a number of pipeline updates, including the fact that initial feedback from the FDA has not been supportive of accelerated approval of INT for melanoma based on the current data. As a result, the firm expects shares to trade off this morning. The firm keeps an Equal Weight rating and $94 price target on Moderna shares, which are down $8.71, or 11%, to $70.80 in pre-market trading.