Moderna Inc. (MRNA.O) has announced a halt to its intended construction of a vaccine manufacturing plant in Kenya, citing a decrease in demand for COVID-19 vaccines post-pandemic.
The decision comes after the pharmaceutical giant pledged in 2022 to inject approximately $500 million into the Kenyan facility, with ambitions to deliver up to 500 million doses of its mRNA vaccines annually to the African continent.
Moreover, Moderna had outlined aspirations to commence the filling of vaccine doses on the African soil as early as 2023.
The halt
Regrettably, the anticipated demand for COVID vaccines has dwindled in the aftermath of the pandemic’s ebbing, resulting in Moderna’s failure to secure any vaccine orders for Africa since 2022, as disclosed by the company.
- This shift in market dynamics has led Moderna to report losses surpassing $1 billion, attributed to the cancellation of previously placed orders from the African continent.
- The pharmaceutical landscape is evolving rapidly, with companies recalibrating strategies to align with shifting demand patterns.
- Moderna’s decision highlights the challenging environment facing vaccine manufacturers in navigating post-pandemic realities.
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What you should know
In 2023, Moderna, Inc. (NASDAQ: MRNA) snubbed Nigeria, Africa’s most populous country, and sealed an agreement with the Government of the Republic of Kenya to establish Africa’s inaugural mRNA manufacturing facility.
- In a partnership projected to inject a staggering $500 million into the Kenyan economy, Moderna committed to constructing a state-of-the-art mRNA facility capable of churning out a whopping 500 million vaccine doses per annum.
- This initiative would not only signify Moderna’s foray into Africa but also position Kenya as a hub for cutting-edge pharmaceutical production on the continent.
According to President William Ruto, the investment would have served as a catalyst for economic growth, with Moderna’s commitment aligning with Kenya’s agenda to boost manufacturing’s GDP contribution to 20% by 2030.
Moderna’s investment resonated with Kenya’s economic vision, aiming to elevate manufacturing’s GDP contribution from the current 7% to 20% by 2030.
As part of this strategy, Kenya had set its sights on attracting $10 billion in foreign direct investment annually.