On Thursday, Moderna announced it had postponed plans to develop a vaccine manufacturing facility in Kenya. This decision came as demand for COVID-19 vaccines dropped following the pandemic.
Moderna’s decision aligns with its aim of streamlining production to cut costs, even as it allocates around $4.5 billion this year toward developing various new vaccines, including those for cancer and respiratory syncytial virus (RSV).
Many of the messenger RNA (mRNA) vaccines that Moderna is developing, such as those for HIV and malaria, are still in their early stages.
“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,” the business stated in a statement.
Moderna’s plan undermines Africa’s efforts to reduce dependency on foreign vaccine and medication imports.
“To respond effectively to infectious disease outbreaks or better yet prevent them in the first place, it is crucial that there is local vaccine manufacturing capacity and capability to support local needs,” said Charlie Weller, head of prevention in the infectious disease team at Wellcome.
Wellcome is a health research and advocacy foundation.
In 2022, the business announced its intention to invest approximately $500 million in the Kenya facility. Additionally, it committed to distributing up to 500 million doses of its mRNA vaccines to Africa annually.
It also intended to start filling doses of its COVID vaccine in the continent as early as 2023.
According to the business, Moderna has not received any vaccine orders for Africa since 2022. This is owing to a decline in global demand.
The company reported losses and write-downs totaling more than $1 billion. This was due to the cancelation of earlier purchases from Africa.
Click here for more Business news.