Moderna halts construction plans for Kenya plant due to decreased demand for COVID vaccine, reports ET HealthWorld

In a surprising move, Moderna has announced the halt of its plans to build a vaccine manufacturing facility in Kenya due to decreased demand for COVID-19 vaccines post-pandemic. This decision aligns with Moderna’s cost-cutting strategy, despite ongoing efforts to invest in research and development for new vaccines, such as those for cancer and respiratory syncytial virus (RSV).

The pharmaceutical company’s decision to pause the construction of the mRNA manufacturing facility in Kenya is a setback for Africa’s efforts to reduce its reliance on vaccine and drug imports. Local vaccine manufacturing capacity is crucial for responding effectively to infectious disease outbreaks and preventing future health crises.

Moderna had previously committed to investing $500 million in the Kenya facility and supplying up to 500 million doses of its mRNA vaccines to Africa annually. The company also intended to begin filling doses of its COVID vaccine on the continent by 2023. However, the lack of vaccine orders for Africa since 2022, coupled with a decline in global demand, led to Moderna’s decision to suspend the project.

The drugmaker has reported over $1 billion in losses and write-downs related to the cancellation of previous vaccine orders from Africa. This move highlights the challenges faced by pharmaceutical companies in balancing vaccine production with fluctuating demand in a post-pandemic world.