Moderna lowered its 2025 sales forecast by $1 billion.

Modern The biotech company on Monday lowered its 2025 sales guidance by about $1 billion as it cuts costs and expands its portfolio.

Moderna now expects 2025 revenue of between $1.5 billion and $2.5 billion, most of which will come in the second half of the year. Most of the sales will come from Moderna’s covid shot and the newly launched respiratory syncytial virus vaccine, according to the release.

The guidance was cut to $3.5 billion from an earlier forecast of $2.5 billion in September. At the time, the company It said it expects to generate $6 billion in cash by 2028 — pushed back from 2026.

Shares of Moderna closed up about 17 percent on Monday. Other vaccine stocks also fell, with Novavax and BioNTech both down more than 7 percent.

“As we move into 2025, there are a few uncertainties that we’re planning for,” Moderna CFO Jamey Mock told CNBC. “Up until this point, we’re projecting them to be headwinds. They could be tailwinds, but right now we’re looking at them as headwinds.”

Mock pointed to four factors that could weigh on sales, including heightened competition in the Covid-19 market. Moderna’s share of the US retail market for Covid-19 has fallen from 48% by the end of 2024 to 40% by 2023, and the company is poised for another decline this year, he said.

He pointed out Sanofi Trade together NovavaxA new deal could make the shot at a worldwide Covid vaccine more competitive.

Mock’s second factor is declining vaccine volumes, which are down 7% overall in the U.S. retail market by fall 2024. Compared to the same period in 2023. The last two factors are manufacturing contracts with few countries and uncertainty. About what Centers for Disease Control and Prevention consultants recommend for the RSV vaccine.

But Mock said the company expects to reduce its 2025 cash flow by $1 billion, with plans to cut an additional $500 million in 2026.

“We’re taking the right steps to protect our cash flow,” Mock said. “We are excited to invest and diversify our portfolio.”

The announcement comes as Moderna charts its way forward after rapidly declining demand for its Vivid vaccine, the only commercially available product until the RSV shot hit the market last year. It also comes at the annual Moderna presentation JPMorgan Healthcare ConferenceIt is one of the largest gatherings of healthcare executives in the world and the starting point for the industry’s bargaining power.

Moderna’s two-shot revenue met its forecast for 2024, reaching $3 billion to $3.1 billion. In the year In November, the company took advantage of the fact that the revised Viv Shot received approval in the US three weeks earlier than the previous shot, which was due in 2023.

Still, those sales in 2018 $6.7 billion in 2023 from Moderna’s Covid-19 shot That would represent an $18 billion drop from what it would generate by 2022, with fewer people raising their hands for improved jobs.

Moderna plans to grow its portfolio with 10 new product approvals over the next three years, including a combination shot targeting both Covid and flu and a “next-generation” Covid shot. The company said on Monday it could see three approvals by 2025.

The company is betting on a pipeline built around its messenger RNA platform, the same technology used in its Covid vaccine and RSV shot.