Moderna (MRNA) shares plunged in premarket trading Thursday as the company announced plans to cut costs and pause or end development of some products as it focuses on later-stage trials.

“The size of our late-stage pipeline combined with the challenge of bringing products to market means we must now focus on getting these 10 products to patients, slowing the pace of new R&D investments and building our commercial business,” said Stephane Bancel, CEO of Moderna.

Moderna expects FDA approval of ten new products in the next three years

Moderna announced Thursday that based on current trial data, the company expects to receive Food and Drug Administration (FDA) approval for 10 new products over the next three years. At the same time, the company will cut its research and development (R&D) spending by about $1.1 billion through 2027. This fiscal year, R&D spending is expected to be about $4.8 billion. By the end of fiscal year 2027, spending is expected to be reduced to $3.6 billion to $3.8 billion.

The drugmaker said it currently has five vaccines against respiratory diseases with promising results from Phase 3 trials and announced that at least three vaccines will be submitted to the FDA for approval before the end of the year. The company also has five other vaccines against cancer and other rare diseases that could be approved in the next few years.

Moderna expects revenue of between $2.5 billion and $3.5 billion for fiscal 2025 (analyst forecasts are $2.9 billion) and said Thursday that the company expects to break even with operating expenses and projected revenue of $6 billion in 2028, once more products are approved.

Following the news, Moderna shares fell over 12% to $69.29 in premarket trading on Thursday.