Moderna signs MoU with Shanghai Government to Develop mRNA Medicines

Moderna, a vaccine manufacturer, announced on Wednesday (July 5) that it had signed a memorandum of understanding and a land collaboration agreement to explore opportunities to research, develop, and manufacture mRNA medicines in China.

"Any medicines produced under this agreement will be exclusively for the Chinese people... and will not be exported," a spokesperson said in response to a question via email. He declined to comment on the size of the transaction and did not immediately provide any additional information.

Shanghai's city government confirmed the signing of strategic cooperation agreements with Moderna on Thursday, following a meeting on Wednesday between Shanghai's Communist Party Secretary Chen Jining and the company's Chief Executive Officer Stephane Bancel.

"We hope to speed up the implementation of Moderna's projects ... and promote more advanced technologies and innovative products to land in Shanghai," Chen said in the statement.

Chinese media outlet Yicai reported on Tuesday that Moderna was set to make its first investment in China that could be worth around US$1 billion.

Moderna said in May it was looking for opportunities in China after registering a legal entity in the world's second-largest economy.

The company prior to this had no presence in mainland China. It opened an office in Hong Kong last year as part of an Asia expansion.

Its expansion into mainland China comes as its revenue growth slows sharply due to waning global demand for its COVID-19 vaccine, the US company's only approved product.

Moderna in February forecast a possible net loss for 2023, calling it a transition year before it starts to see sales from experimental vaccines for respiratory syncytial virus (RSV) and flu.