Moderna to establish China ops, could invest up to $1bn

Vaccine company Moderna has signed a deal to set up operations in Shanghai to develop and make mRNA products specifically for the China market.

Moderna’s CEO, Stéphane Bancel, was in Shanghai this week to set up the new venture. While Moderna confirmed an agreement has been signed, it did not disclose a monetary value, though multiple outlets said the firm would invest up to $1 billion to establish a China presence.

Moderna rocketed into the big league with the success of its COVID-19 vaccine. The firm is developing a large portfolio of mRNA vaccines for conditions beyond COVID, including latent diseases, HIV, influenza and several cancers.

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With one of the first COVID vaccine globally, Moderna was not able to obtain regulatory approval in China for the COVID vaccine because the company refused to disclose its IP for the vaccine to regulators. As a China company, it would have better access to the country’s large population.

In an emailed statement, Moderna said, “We learned during the pandemic that health challenges anywhere can represent a threat to everyone, everywhere. With this announcement, we are taking further steps to deliver on our mission of creating the greatest possible impact to people through mRNA medicines.”

Previously, Moderna did not have a presence in China’s mainland, though it had opened an office in Hong Kong last year as part of its Asian expansion plan. The company also allocated $100 million to open an office in Shanghai’s Minhang district in May.

A version of this article was first published in ChinaBio Today on July 5, 2023