Moderna takes $1.5 billion loan, expects 10% revenue growth next year

By Patrick Wingrove

(Reuters) -Moderna said connected Thursday it secured a five-year indebtedness of $1.5 cardinal from Ares Management, arsenic it targets up to 10% ​revenue maturation adjacent year.

The vaccine maker, which is expected to unveil strategy updates to ‌analysts aboriginal connected Thursday, said it volition gully $600 cardinal upfront, and volition person optional entree to $400 cardinal done November ‌2027 and $500 cardinal done November 2028.

Moderna President Stephen Hoge told Reuters the indebtedness would springiness the institution flexibility to money concern improvement oregon negociate risk. "As we spot opportunities to invest, whether successful the institution oregon different programs, we privation to beryllium capable to bash that without immoderate questions," helium said.

Moderna has ⁠been struggling financially since its pandemic windfall,‌ with gross plunging from $18.4 cardinal successful 2022 to a fraction of that arsenic COVID-19 vaccine request collapsed, forcing heavy outgo cuts and pipeline reprioritization.

After ‍dropping its cytomegalovirus vaccine successful October, Moderna said it has besides shelved programs for herpes simplex, Varicella-Zoster and glycogen retention disease.

The company, which expects $1.6 cardinal to $2 cardinal successful income for 2025, had been banking ​on gross from newer vaccines utilizing mRNA technology, including mRESVIA for RSV and an experimental COVID/flu ‌combination shot.

Sales of its RSV changeable person lagged competing vaccines from Pfizer and GSK, however.

Hoge said the projected 10% gross maturation for 2026 was riding connected momentum from UK, Canada and Australia partnerships and U.S. request for Moderna's next-generation COVID vaccine mNEXSPIKE.

He added that 2027 should besides get a assistance arsenic Pfizer's EU COVID vaccine woody expires, opening nationalist tenders to a $1.8 cardinal marketplace ⁠where Moderna presently has small share, and again successful ​2028 from expected COVID‑flu combo and norovirus vaccine rollouts.

"We ​do expect we volition beryllium the archetypal and possibly lone (player) successful those vaccine categories," helium said.

Late-stage information connected an individualized crab vaccine, developed ‍with spouse Merck &⁠ Co, could besides beryllium disposable adjacent year, Hoge said, starring to a imaginable 2027 launch.

The institution connected Thursday said it expects to trim $500 cardinal from expenses successful some ⁠2026 and 2027, arsenic it works toward a extremity of breaking adjacent successful 2028.

After cutting immoderate programs, Moderna said it ‌will summation research-and-development investments for its crab and uncommon illness pipeline.

(Reporting ‌by Patrick Wingrove successful New YorkEditing by Bill Berkrot)