Moderna (NASDAQ:MRNA) has postponed its plans to set up a vaccine manufacturing plant in Kenya, according to a Financial Times report. The biotech major had entered into a deal with the Kenyan government last year and intended to invest around $200 million in a facility that would produce up to 500 million vaccine shots a year.
Moreover, the Kenyan government gave Moderna several tax breaks and allowed it to more than halve its initial investment of $500 million.
Moderna confirmed to the Financial Times that it had paused the construction of a vaccine plant in Kenya. This decision was prompted by decreasing sales of its COVID-19 vaccine in Africa after the pandemic. As a result, it did not consider the investment in a plant in Kenya as “viable.”
The report cited analysts’ estimates, projecting MRNA to generate total COVID-19 vaccine sales of $3.9 billion this year. This marks a steep decline of 79% from its peak vaccine sales of $18.4 billion in 2022.
What Is the Forecast for MRNA Stock?
Analysts remain cautiously optimistic about MRNA stock, with a Moderate Buy consensus rating based on nine Buys, six Holds, and two Sells. Over the past year, MRNA has declined by more than 30%, and the average MRNA price target of $134.56 implies an upside potential of 28.6% from current levels.
