Moderna Halts Plans to Build Vaccine Manufacturing Site in Kenya Due to Drop in Demand
In a surprising turn of events, Moderna announced on Thursday that it has decided to pause its plans to build a vaccine-manufacturing site in Kenya. The biotech company cited a steep drop in demand for its Covid vaccines as the reason behind this decision.
According to Moderna, the company has not received any vaccine orders for Africa since 2022, leading to more than $1 billion in losses and write-downs related to the cancellation of previous orders from the continent. This lack of demand has forced Moderna to reevaluate its manufacturing footprint and cut costs.
Shares of Moderna fell 45% last year as demand for Covid vaccines waned worldwide. However, the stock has seen a slight uptick of around 6% this year.
Back in March 2022, Moderna had announced plans to invest about $500 million in the Kenyan site and supply up to 500 million doses of its messenger RNA vaccines to Africa annually. The company also intended to start filling doses of its Covid vaccine in the continent as early as 2023.
Despite these ambitious plans, Moderna has now determined that the demand in Africa is not sufficient to support the viability of the factory planned in Kenya. However, the company remains committed to ensuring equitable access to its Covid shot and meeting emerging demands from African nations through its global manufacturing network.
In addition to Covid vaccines, Moderna is also working on developing vaccines for diseases that predominantly affect the African continent, such as HIV and malaria. These efforts are part of the company’s broader mission to expand access to vaccines that are currently out of reach in many parts of the world.
While these new vaccines are still in the early stages of development, Moderna believes it is prudent to pause its efforts to build an mRNA manufacturing facility in Kenya. This decision will allow the company to better align its infrastructure investments with the evolving healthcare needs and vaccine demand in Africa.
Overall, Moderna’s decision to halt its plans in Kenya serves as a reminder of the challenges faced by pharmaceutical companies in navigating the ever-changing landscape of global vaccine demand.
