Moderna, a well-known pharmaceutical company, recently shared its financial results for the third quarter. The company reported $1 billion in revenue, which is about 45% less than the same period last year. They also adjusted their expected revenue for 2025, now forecasting between $1.6 and $2 billion, down from the previous estimate of $1.5 to $2.2 billion. Despite these challenges, Moderna’s stock price increased by as much as 5% in early trading. This is likely because the company is making good progress in reducing its costs. Moderna became famous during the COVID-19 pandemic for creating one of the first vaccines. However, since then, they have struggled to find another big seller. Sales of their COVID vaccine have dropped significantly, and other vaccines they are developing are facing delays or setbacks. For example, a combination flu and COVID vaccine is not yet on the market, and a vaccine for cytomegalovirus did not pass clinical tests. Another vaccine, mResvia, which is used for respiratory syncytial virus, has not sold well. Changes in leadership at the Department of Health and Human Services and the Food and Drug Administration have also affected Moderna. These changes have led to less funding for certain technologies and stricter approval processes, putting more pressure on Moderna to cut costs and develop new products. Over the past year, Moderna has been working on reducing its expenses. In September 2024, they scaled back their research plans, and in July, they announced layoffs for 10% of their workforce. The company reported that they are exceeding their cost-cutting goals. Their operational expenses from July to September were about 34% lower than the same period last year, and they expect to reduce costs by more than $1 billion in 2025. To grow revenue, Moderna is focusing on expanding the use of their COVID shots internationally. They are awaiting approvals in countries like Australia, Europe, Japan, and Taiwan. They also have a combination flu and COVID vaccine under review in Europe and are waiting for guidance on resubmitting it in the U.S. Additionally, Moderna is developing cancer vaccines, including one for melanoma in partnership with Merck & Co. For investors, the focus will be on how well these vaccines are accepted in the market, any news from the current administration, and further cost cuts.