Moderna (NASDAQ: MRNA) announced Monday that it has established a memorandum of understanding with Kenya to build a covid vaccine manufacturing facility in Africa. The company is building the mRNA plant in Africa with the intention of producing a maximum of 500 million doses of vaccines per year.
The American pharmaceutical and biotechnology company expects to invest up to USD500 Million in the new plant. The facility has the potential to be expanded to include fill/finish and packaging capabilities at the location. According to Moderna, it may be able to fill Covid vaccine doses within the Kenya facility as soon as 2023, subject to demand.
“Battling the COVID-19 pandemic over the last two years has provided a reminder of the work that must be done to ensure global health equity. Moderna is committed to being a part of the solution and today, we announce another step in this journey – an investment in the Republic of Kenya to build a drug substance mRNA manufacturing facility capable of supplying up to 500 million doses for the African continent each year,” said Stéphane Bancel, Chief Executive Officer of Moderna.
Moderna came to an agreement with the help of the U.S. government. As the pandemic subsides within the United States, the Biden administration has made the increase of global vaccination a priority.
“Kenya recognizes and appreciates the collaboration of Moderna in building our local manufacturing capacity. This will ensure as a country and region we can quickly respond to health demands requiring vaccine commodities,” said Sen. Mutahi Kagwe, Cabinet Secretary for Health of the Republic of Kenya.
The company delivered a total of 807 million covid vaccine doses worldwide throughout 2021, which is currently its only commercially available product. It managed to sell USD17.7 Billion of its vaccine during 2021, the majority of its USD18.5 Billion revenue for that year.