Moderna Scraps Japan mRNA Plant Amid Weakening Global Demand

Moderna (MRNA) has announced the cancellation of its plans to construct a messenger RNA (mRNA) manufacturing facility in Japan, attributing the decision to a significant shift in the global and local business environment and prevailing weak demand. This move marks a strategic retreat from a previously intended expansion, highlighting the challenges faced by the biotechnology firm in a post-pandemic landscape.

The cancellation comes as Moderna grapples with a substantial decline in revenue from its flagship COVID-19 vaccines, Spikevax, and a slower-than-anticipated adoption of its newly launched RSV vaccine, mRESVIA. The company had been banking on a diversified pipeline of new mRNA shots to offset the diminishing returns from its pandemic-era products.

While the manufacturing plant plans are halted, Moderna confirmed that it has completed the construction of an mRNA drug research and manufacturing facility at the Shonan Health Innovation Park. This suggests a continued, albeit re-evaluated, commitment to research and development within Japan, with the company indicating it would reconsider manufacturing facilities if the business environment improves.

The broader pharmaceutical industry is also navigating uncertainties, including concerns around regulations and policies, such as potential tariffs on pharmaceutical products. This external pressure, combined with the internal challenges of a saturated vaccine market, contributes to the "poor business environment" cited by Moderna.

Despite this setback in manufacturing expansion, Moderna has been actively pursuing regulatory approvals for a range of mRNA-based products in Japan, including a next-generation COVID-19 jab and an RSV vaccine. The company also entered a joint agreement with Mitsubishi Tanabe Pharma Corporation in July 2024 to co-promote its mRNA respiratory vaccine portfolio in Japan, aiming for broad public health access.