Spikevax sales slump while seasonal demand delays revenue
Moderna reported a 41% decline in quarterly sales, down to $114 million from $241 million a year earlier. The sharp drop is attributed to lower demand for its COVID-19 vaccine, Spikevax, as the product transitions into a seasonal offering aligned with fall and winter. U.S. sales totaled $88 million, while international revenue reached $26 million for the second quarter of 2025.
Despite the drop, demand is expected to pick up in the second half of the year. The company highlighted recent FDA and European Medicines Agency approvals for updated formulations of Spikevax, including pediatric use and protection against the LP.8.1 variant. Moderna also received approval for its next-generation COVID vaccine, mRNA-1283 (mNEXSPIKE), targeting high-risk populations aged 12 and up.
Mixed performance for RSV vaccine and mounting costs
Moderna reported negligible sales for its RSV vaccine, mRESVIA, during the quarter. The product, approved for individuals aged 60 and above in 40 countries, has now been expanded to cover at-risk individuals aged 18–59 in the U.S., following recent FDA approval.
The company’s cost of sales reached $119 million, flat year over year, but significantly higher as a percentage of revenue — rising to 105% from 62%. This was due to lower net product sales, $38 million in inventory write-downs, and $52 million in wind-down and idle manufacturing costs. R&D expenses fell 43% to $700 million, driven by reduced clinical trials and manufacturing activity.
Revenue forecast revised downward, layoffs announced
Moderna now expects 2025 revenue between $1.5 billion and $2.2 billion, down from a previous high of $2.5 billion. The adjustment is mainly due to delayed revenue from U.K. contracts, now expected in Q1 2026. The company anticipates 40–50% of its second-half revenue will be recognized in the third quarter and the rest in Q4.
Cost of sales for the year is projected at approximately $1.2 billion, while R&D costs are expected to range from $3.6 billion to $3.8 billion, down from an earlier forecast of $4.1 billion. The firm also announced a 10% reduction in global workforce, aiming to end the year with fewer than 5,000 employees. Year-end cash and investments are forecasted at $6 billion.
Legal victory strengthens mRNA patent portfolio
Moderna scored a legal win in the U.K., where the Court of Appeal upheld the validity of its EP’949 patent covering modified mRNA. The court confirmed the patent was infringed by Pfizer/BioNTech’s Comirnaty vaccine. This ruling follows a 2024 High Court decision and marks the first second-instance validation of a core Moderna patent.
Parallel legal cases are underway in Germany and at the European Patent Office. While the German court found Pfizer and BioNTech in violation, the matter is under appeal. The EPO also upheld EP’949, though an appeal is pending. Moderna aims to use these decisions to seek damages in various jurisdictions.
