When you murder your most loyal customers, they stop coming back...
Sasha Latypova
Due Diligence and Art
Moderna cuts R&D budget by $1.1B, Charles River lays off 3% staff.
According to Endpoint News, Moderna is in financial trouble. They are not even “break-even”, i.e. not generating positive cash flow from operations! This is after Trump’s Operation Warp Speed showered $10B+ on them in a span of about 18 months. Where did all this money go? Swiss vaults? Secret underground bases in Antarctica where Bancel is planning to hide out for the duration of Armageddon? I don’t know, I am not well versed in these conspiracies.
💬 To kick off its annual R&D day in New York, Moderna said Thursday that it will slash its annual spending on research and development by $1.1 billion by 2027. The biotech will also stop developing five early-stage programs, place other drugs on the backburner and focus on a handful of late-stage mRNA medicines.
Simultaneously, Moderna overhauled its long-term financial projections, and it now forecasts the company’s break-even point in 2028 instead of 2026. The shake-up will not include major layoffs, Bancel told Endpoints News, and he envisions the company staying around its 6,000-employee headcount for the next three to five years.
But, you see, according to Bancel, this is because “it’s working!”, just like your beautiful mRNA shot is working as promised…
💬 “It’s a moment of evolution, in the sense the platform is working, which is the most important thing,” Bancel said. “We just want to be responsible and financially disciplined.”
Moderna’s stock price $MRNA has fallen over 80% over the past three years, erasing about $150 billion in market value from its all-time, pandemic highs. The Wall Street is not impressed: