Moderna is halting plans for a vaccine manufacturing facility in Kenya as demand for Covid jabs falls
A nurse prepares a dose of the modern Covid-19 vaccine at the Oltepesi Pharmacy in Kajiado, Kenya, on September 9.
Patrick Meinhardt | AFP | Getty Images
Modern On Thursday, the company said it had suspended its plans to build a vaccine production facility in Kenya after a sharp drop in demand for its Covid vaccines.
The biotech company said it had not received vaccine orders for Africa since 2022 and suffered more than $1 billion in losses and write-downs related to the cancellation of previous orders from the continent.
Moderna's decision is in line with its broader efforts to cut costs by shrinking its Covid vaccine manufacturing footprint. The company's business took a significant hit last year as demand for these shots waned worldwide and people became less reliant on protective vaccines and treatments against the virus.
Moderna shares fell 45% last year, but the stock is up about 6% this year.
In March 2022, the company announced it would invest approximately $500 million in the Kenyan site and deliver up to 500 million doses of its messenger RNA vaccines to Africa each year. Moderna also had plans to begin filling doses of its Covid vaccine on the continent as early as 2023.
But the company has since concluded that demand in Africa “is not sufficient to support the profitability of the planned factory in Kenya,” Moderna said in a statement on Thursday. Still, the company said it was committed to “ensuring equitable access to its Covid vaccination across its global manufacturing network and meeting the emerging needs of African countries.”
The company is also working on the development of vaccines against diseases that primarily affect the African continent, such as HIV and malaria. These vaccinations are part of Moderna's broader effort to expand access to vaccines that are out of reach in many parts of the world.
However, these vaccinations are still in the early stages of development, the company noted.
“Against this backdrop and consistent with our strategic planning, Moderna believes it is prudent to pause its efforts to build an mRNA manufacturing facility in Kenya,” the company said in a statement. “This approach will enable Moderna to better align its infrastructure investments with evolving healthcare needs and vaccine demand in Africa.”
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