According to Reuters on July 5, U.S. vaccine manufacturer Moderna announced that it has signed a Memorandum of Understanding (MoU) and a land cooperation agreement, seeking the opportunity to research, develop, and produce mRNA drugs in China. Chinese media stated this marks Moderna's first investment in China.
Earlier on July 5, the South China Morning Post reported that Moderna was set to sign a deal worth $1 billion in Shanghai, making a significant move into China's healthcare market. Moderna was expected to sign an agreement with the Shanghai municipal government as early as July 5, to promote its mRNA products in the world's second-largest economy.
According to an insider, this investment will be channeled into several vaccine development and manufacturing projects. A spokesperson for Moderna told Reuters that any drugs produced under this agreement would be exclusively for use in China and would not be exported.
In April of this year, Moderna CEO Stéphane Bancel, during a visit to Shanghai, stated his intention to accelerate investments in the city and carry out research and production with Chinese partners. The South China Morning Post reported that Moderna had established a legal entity in Shanghai earlier this year, marking its first step into the Chinese market. In May, Moderna registered a biotech company called Moderna (China) in Shanghai's Minhang District.
Despite worsening Sino-American relations, Moderna continues to push forward with its entry into the Chinese market. So far, Moderna has no business in mainland China. As part of its Asian expansion plan, the company opened an office in Hong Kong last year.
Yahoo News reported that Moderna's mRNA biotechnology played a crucial role in the COVID-19 pandemic. However, due to the significant decline in demand for COVID-19 vaccines, Moderna had predicted in February that it might suffer losses in 2023. Against this backdrop, companies, including Moderna, are seeking growth points for the next phase. Investment in the Chinese market will be a critical part of their strategic development.
