Moderna, a leading biotechnology company, has announced its decision to halt the construction of a vaccine manufacturing facility in Kenya.
This move comes as a result of the decreased demand for COVID-19 vaccines in the post-pandemic era.
The decision to pause the construction of the facility is part of Moderna’s larger strategy to resize its manufacturing network in order to reduce costs.
Despite this pause, the company is still committed to investing approximately $4.5 billion in research and development this year, focusing on the development of new vaccines for diseases such as cancer and respiratory syncytial virus (RSV).
Modern’s pipeline includes several mRNA vaccines, such as those for HIV and malaria, which are still in the early stages of development.
In light of this, the company has deemed it necessary to suspend its efforts to build an mRNA manufacturing facility in Kenya.
According to Moderna, this decision will enable the company to better align its infrastructure investments with the changing healthcare needs and vaccine demand in Africa.
By taking this strategic approach, Moderna aims to ensure that its resources are effectively allocated to meet the evolving needs of the region.
In 2022, the company announced a plan to invest $500 million in the Kenyan facility and supply up to 500 million doses of its mRNA vaccines to Africa annually. They planned to begin filling doses of their COVID vaccine on the continent as early as 2023.
Unfortunately, demand for COVID vaccines has decreased significantly since the end of the pandemic, leading to Moderna not receiving any vaccine orders from Africa since 2022.
The drugmaker has reported taking more than $1 billion in losses and write-downs due to the cancellation of previous orders from Africa. It is a stark reminder of the unpredictable nature of the pharmaceutical industry and the challenges companies face when trying to meet global health needs.
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