Moderna eyes mRNA manufacturing efficiencies as 3 plants set to come online in 2025

In the mRNA vaccine maker’s 2024 Shareholder Letter, CEO Stéphane Bancel reflected upon the company’s second year manufacturing and distributing vaccines for COVID-19, admitting that sales in the US have declined due to increased market competition while global sales have had a mixed performance.

To counter such issues, the company is looking to decrease research and development (R&D) expenditures and drive efficient manufacturing. Bancel predicted that by 2027, annual R&D expenses will be $1.1 billion less than in 2024.

And despite disappointments in the COVID-19 vaccine space, Bancel said Moderna is pushing ahead with plans for its three manufacturing facilities in the UK, Australia, and Canada, which will come fully online in 2025 and are designed to bolster the company’s pandemic readiness.

The UK facility is located near Oxford and is called the Moderna Innovation and Technology Centre (MITC). It will be capable of producing up to 100 million vaccine doses annually. The 10,000 square-foot Australian facility in Melbourne will have the same production capabilities, while the Laval, Canada facility will be able to produce up to 30 million doses of respiratory vaccines with the ability to scale up to 100 million during a hypothetical future pandemic.

Bancel said that in addition to manufacturing its Spikevax COVID-19 vaccine, Moderna is focusing on driving sales for its mRESVIA vaccine for respiratory syncytial virus (RSV). According to the Center for Disease Control and Prevention (CDC), RSV is a common respiratory illness that can be dangerous in infants and older adults, sometimes leading to hospitalization.

The CDC recommends vaccination for vulnerable population groups. Moderna’s mRESVIA vaccine was approved for older adults in 2024. 

Although his letter was light on specifics, Bancel also mentioned uncertainty surrounding the US government’s upcoming transition in light of Donald Trump’s electoral win and his scheduled inauguration as president later this month. The US Senate will be tasked with confirming Robert F. Kennedy Jr. as the next Health and Human Services (HHS) secretary, which has been reported by numerous outlets as a controversial pick.

Kennedy has been a proponent of the debunked claim that vaccines cause autism, and he has been particularly critical of COVID-19 vaccines. He once told FOX News “There’s no vaccine that is safe and effective.” Nevertheless, he has promised that he will not take vaccines away from Americans.

In closing, Bancel said, “We have the largest late-stage pipeline of mRNA medicines in the world, and we will continue to focus on positively impacting human health. While there is work to be done to meet our execution targets and build our commercial capabilities, I am confident that our team will continue to work relentlessly to achieve our goals.”