.September 12, 2024 02:57 PM

Moderna (NASDAQ:MRNA) stock plummeted over 19% after announcing a $1.1 billion reduction in R&D budget at its annual R&D Day. The company plans to cut R&D expenses from $4.8 billion in 2024 to $3.6-$3.8 billion by 2027, focusing on maximizing current product pipeline and commercial growth. CEO highlighted the need to bring existing products to market and deliver ten new products by 2027. Upcoming products include a next-gen COVID-19 vaccine and a flu/COVID combo vaccine expected to be approved in 2024. Despite budget cuts, Moderna boasts a 66% success rate in clinical trials, well above the industry average of 19%. Investors reacted negatively to the news, causing a sharp decline in stock price.