Moderna Puts on Hold Vaccine Plant in Kenya

After the sharp decline in demand for COVID19 vaccine, Moderna (MRNA) has shelved its plan to build a vaccine production facility in Kenya. The decision is a setback for efforts to localize vaccine production on the African continent which was penalized during the pandemic.

Initial plans outlined in 2022 called for an invest of USD 500 million into a vaccine facility which would be able to produce as many as 500 millions doses of mRNA vaccines annually.

Moderna is currently developing mRNA vaccines for HIV and malaria, but these are still at an ‘early stage.’ Nevertheless, Moderna remains committed to bring to market new products based on the mRNA technology by investing USD 4.5 billion in R&D this year.

Moderna is a company built upon a single product which is the COVID19 vaccine based on the novel mRNA technology. At the height of the pandemic in 2022, its revenues shot to USD 18.4 billion. After the pandemic in 2023, its sales sharply slid down to only USD 4 billion.

The company received huge orders from African countries which it could not fulfill. All that has changed with countries cancelling orders for COVID19 vaccines.

In a related announcement, Moderna stated that it remains committed to ‘ensuring vaccine equity for Africa’ but given the current market environment, ‘it has to better align its infrastructure investments with the evolving healthcare needs and vaccine demand in Africa.’