Moderna’s Kenya plant folds as African orders dry up
Moderna’s Kenya plant folds as African orders dry up
Vaccine manufacturer, Moderna, is halting the construction of its new factory in Kenya due to a decrease in demand for Covid-19 vaccines in Africa. Initially, US company had pledged around $500 million for this venture and intended to provide up to 500 million doses of its mRNA vaccines annually to Africa, with plans to commence vaccine production in the region in 2023.
However, with the decline in demand for Covid-19 vaccines since the easing of the pandemic, Moderna says it has not received any vaccine orders for Africa since 2022.
Consequently, the company has incurred over $1 billion in losses and write-downs associated with the cancellation of previous African orders.
“Given this, and in alignment with our strategic planning, Moderna believes it is prudent to pause its efforts to build an mRNA manufacturing facility in Kenya. This approach will allow Moderna to better align its infrastructure investments with the evolving healthcare needs and vaccine demand in Africa,” Moderna explained in a statement.
The company however noted that it is working on other vaccines based on its pioneering mRNA technology to help tackle diseases such as cancer, HIV and shingles.
