Moderna has decided not to proceed with its previously announced plans to build a messenger RNA (mRNA) drug substance manufacturing plant in Japan. The company attributed the decision to “changes in the business environment” globally and within Japan.
The mRNA specialist had initially committed in 2023 to constructing two facilities at the Shonan Health Innovation Park (iPark) in Kanagawa Prefecture, Fujisawa. This initiative was aligned with Japan’s strategy to develop a domestic vaccine production infrastructure. While construction of one facility focused on drug research and manufacturing has been completed, Moderna stated that the mRNA drug substance plant will not move forward “at this time.”
Moderna’s Japan unit confirmed the decision in a press release, stating it followed “careful consideration given the current business environment.” The company added that it “continues to view business expansion in Japan as an important part of its strategy, and will reconsider establishing an mRNA drug manufacturing facility in the future if the business environment is favorable.”
Despite cancelling the plant, Moderna affirmed its commitment to maintaining a “stable supply” of vaccines in Japan through its global production network. The company also plans to continue working with the Japanese government and other stakeholders on public health efforts, including advancing mRNA-based treatments for cancer, infectious diseases, and rare diseases.
Moderna emphasized that the completed facility at iPark “will continue to serve as an important foundation for supporting the development of innovative mRNA medicines.”
Following its rise in 2020, Moderna expanded its global operations, including activities in Japan. In 2022, CEO Stéphane Bancel shared intentions to establish end-to-end vaccine production in the country. The company later completed its first acquisition in 2023 with the $85 million purchase of Japanese DNA supplier OriCiro Genomics K.K.
As COVID-19 became endemic, Moderna experienced a significant decline in vaccine sales and began adjusting its operations. The company has extended its cost-saving program through 2027, with a target to reduce GAAP operating expenses by $1.4 billion to $1.7 billion between 2025 and 2027, according to a May earnings release.
In the first quarter, Moderna reported $100 million in revenue and a net loss of $1 billion. The company expects 2025 revenues to fall between $1.5 billion and $2.5 billion. It recently obtained FDA approval for a next-generation COVID vaccine, but for a smaller population than previous versions.
Last year, Moderna paused a separate project involving a $500 million mRNA manufacturing facility in Kenya, citing demand that was “insufficient to support the viability of the factory.” That facility had been expected to produce up to 500 million injectable doses per year.
In the United States, Moderna’s $590 million government contract for bird flu vaccines was cut, affecting funding for late-stage development and manufacturing. The pharmaceutical industry is also navigating regulatory concerns following Robert F. Kennedy Jr.’s appointment as U.S. Health Secretary, along with changing U.S. trade policies.
Japan’s economy has faced added pressure from U.S. President Donald Trump’s trade policy, including a 25% tariff on Japanese imports scheduled to take effect on August 1, unless a trade agreement is reached. While pharmaceutical products are not currently subject to these tariffs, the administration has considered separate tariffs for the industry, potentially as high as 200%.
