Moderna Halts $500M Kenya Plant Amid $1B Loss, Low Demand

Key Takeaway

• Moderna halts its $500 million mRNA plant in Kenya due to a sharp decline in Africa's Covid-19 vaccine demand and over $1 billion in losses.
• No new vaccine orders for Africa since 2022, impacting Moderna's financials and strategic plans on the continent.
• Despite pausing the Kenyan facility project, Moderna remains committed to enhancing global vaccine access, including in Africa.

Moderna Reassesses African Venture

Moderna Inc. has announced a significant shift in its strategy concerning the African continent, putting a temporary halt on its plans to establish an mRNA manufacturing facility in Kenya. This decision comes as the company evaluates the future demand for Covid-19 vaccines in Africa, a region that has seen a marked decrease in vaccine orders post-pandemic. Initially, Moderna aimed to invest approximately $500 million in the Kenyan facility, with aspirations to supply up to 500 million doses of its mRNA vaccines annually across the continent. This move was part of a broader effort to enhance vaccine accessibility in regions where availability has been limited and to reduce Africa's dependency on international vaccine supplies.

Declining Demand and Financial Impact

The primary reason behind Moderna's pause is the significant drop in Covid-19 vaccine demand within Africa since the pandemic's decline. According to Moderna, there have been no new vaccine orders for the continent since 2022, coupled with the cancellation of previous orders. These developments have led to substantial financial repercussions for the company, including over $1 billion in losses and write-downs. Despite these challenges, Moderna has expressed its ongoing commitment to ensuring equitable vaccine access for Africa through its global manufacturing network.

Global Commitment Unwavering

Despite the current setbacks, Moderna remains dedicated to its mission of widening vaccine access globally, including in Africa. The company's decision to pause its Kenyan manufacturing facility project reflects a strategic reassessment rather than a withdrawal from its commitment to the continent. Moderna's efforts are part of a larger narrative of increasing Africa's autonomy over its vaccine and drug supplies, a goal shared by various stakeholders, including philanthropic organizations like the Gates Foundation, which has invested $40 million to boost mRNA vaccine production in Africa.

Management Quotes

• Moderna Inc.:

  "Moderna has not received any vaccine orders for Africa since 2022 and has faced the cancellation of previous orders, resulting in more than $1 billion in losses and write-downs."