A nurse prepares a dose of the Moderna Covid-19 vaccine at the Oltepesi dispensary in Kajiado, Kenya, on September 9, 2021.
Patricio Meinhardt | AFP | fake images
modern On Thursday it said it had paused plans to build a vaccine manufacturing site in Kenya after a sharp drop in demand for its Covid vaccines.
The biotech company said it has not received any vaccine orders for Africa since 2022 and has taken on more than $1 billion in losses and write-downs related to the cancellation of previous orders from the continent.
Moderna's decision aligns with its broader effort to reduce costs by resizing its Covid vaccine manufacturing footprint. The company's business took a big hit last year when demand for those shots declined around the world, and people relied less on vaccines and protective treatments against the virus.
Moderna shares fell 45% last year, but the stock is up about 6% this year.
In March 2022, the company said it would invest around $500 million in the Kenya site and supply up to 500 million doses of its messenger RNA vaccines to Africa each year. Moderna also had plans to start filling doses of its Covid vaccine on the continent from 2023.
But the company has since determined that demand in Africa “is insufficient to support the viability of the planned factory in Kenya,” Moderna said in a statement Thursday. Still, the company said it is committed to “ensuring equitable access and meeting the emerging demands of African nations” for its Covid jab through its global manufacturing network.
The company said it is also working to develop vaccines for diseases that predominantly affect the African continent, such as HIV and malaria. Those shots are part of Moderna's broader effort to expand access to vaccines that are out of reach in many parts of the world.
But those shots are still in the early stages of development, the company noted.
“Given this, 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 allow Moderna to better align its infrastructure investments with the changing healthcare needs and vaccine demand in Africa.”
