Moderna halts Kenya factory construction due to decreased COVID-19 Vaccine demand
In a strategic move reflecting shifting market dynamics, American pharmaceutical giant Moderna has scrapped plans for constructing a manufacturing plant in Kenya. The decision comes amidst a notable decline in demand for COVID-19 vaccines across the country.
While the company had initially announced intentions to invest approximately $500 million in the Kenyan facility back in 2022, changing circumstances have underscored the lack of immediate necessity for such an investment.
The waning demand for COVID-19 vaccines post-pandemic has significantly impacted Moderna, with no vaccine orders from Africa since 2022, leading to the cancellation of prior orders as well.
This development aligns with Moderna’s broader strategy of streamlining its production network to reduce costs.
This move comes as the company remains committed to investing around $4.5 billion this year in research and development, focusing on the creation of new vaccines, notably targeting cancer and the respiratory syncytial virus (RSV).
Many of Moderna’s mRNA vaccines under development, including those for HIV and malaria, are still in early stages of research and development.
The decision underscores Moderna’s adaptive approach to market dynamics, balancing current vaccine demands with long-term investment in innovative medical solutions.
