Moderna, Inc.

Good day and thank you for standing by. Welcome to Moderna's second quarter 2025 conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star one one on your telephone. You'll then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised today's conference is being recorded. I would like to hand the conference over to your speaker today. Lavina Tlukdar, head of IR, please go ahead.

Thank you, Kevin. Good morning and good afternoon, everyone. Thank you for joining today's call to discuss Moderna's second quarter 2025 financial results and business updates. You can access the press release issued this morning, as well as the slides that we'll be reviewing by going to the investors section of our website. On today's call are Stephane Boncell, our chief executive officer, Stephen Hogue, our president, and Jamie Mock, our chief financial officer. Before we begin, please note that this conference call will include forward-looking statements made pursuant to the safe harbor provisions of the Private Security's Litigation Reform Act of 1995. Please see slide two of the accompanying presentation and our SEC filings for important risk factors that could cause our actual performance and results to differ materially from those expressed or implied in these forward-looking statements. With that, I'll now turn it over to Stephane.

Thank you, Lavina. Good morning or good afternoon, everyone. Thank you for joining us today. I will start with a quick review of Q2. Jamie will present our financial results and outlook. Stephen will review our clinical programs, and then I will come back and share our key priorities and catalysts before we take your questions. Let me start with a review of our financials. In the second quarter, our revenues of 0.1 billion and the loss of 0.8 billion were in line with our expectations, and they reflect the highly seasonal nature of our respiratory vaccine business. We ended the quarter with $7.5 billion in cash and investments. We remain highly focused on financial discipline. I'm very pleased to announce that continued cost reduction efforts across the company in the second quarter of 2025 led to a 35% reduction of cost of sales on the NSG&A combined compared to the second quarter of 2024. As you know, we are very focused on cash costs, and I'm happy to report that on a cash cost basis, we reduced operating expenses by $581 million in Q2 2025 versus Q2 2024, which is a 40% reduction year over year. During the quarter, we made solid progress across our three strategic priorities. Priority one, curbing use of our commercial products. We made strong progress in securing free approvals from the US FDA. On May 31st, we were very pleased to announce the FDA approval of MNextSpike, our next generation COVID vaccine that has shown even higher efficacy than our pioneering SpikeVac vaccine. In mid-June, we received FDA approval of our MResVIA vaccine for high risk individuals aged 18 to 59. As a reminder, we also approved for adults 60 and older in the US and in 38 other countries. And in July, the FDA granted full approval of our SpikeVac COVID vaccine for high risk children aged six months through 11 years. This vaccine had previously been used under EUA. This approval supports our broader goal of driving use of our commercial products and driving the company back into sales growth. On our second priority, advancing our pipeline to drive sales growth. We are very happy to announce positive and strong phase three efficacy data for flu, which we believe will advance both our flu program and our flu plus COVID combination program. Steven will discuss these results shortly. And our third priority, executing with financial discipline. The second quarter of 2025 marked the fourth consecutive quarter where we have reduced combined RZ and SG&E expenses by double digits year over year. Additionally, in the second quarter, we expanded our cost reduction plan well beyond what we announced in the first quarter. We estimate that these measures will take an additional $400 million out of 2025 cost structure we previously laid out. This cost reduction includes a very difficult decision that we announced yesterday to reduce headcount by around 10% to better align modern cost structure and capabilities with current business condition while also sustaining investments in our MR&A pipeline. This decision was obviously not made likely. It impacts people who have dedicated themselves to our mission, teammates and friends who have built Moderna. I want to express on behalf of the entire executive committee our deepest thanks to all of those affected for what they have contributed to the company. These colleagues will always be part of a Moderna story. Finally, before I enter Jamie, you may have seen that in the last couple of hours, the UK Court of Appeal issued its decision. The court has decided to uphold the high court's finding that Moderna's EP949 patent is valid and infringed by Pfizer and BioNTech. Moderna will continue to pursue and enforce its patent rights globally to protect its innovative MR&A technology. Jamie.