US Covid Vaccine Production: Moderna's Plans and Expectations

The Covid-19 pandemic has presented numerous challenges to global health and economies. Amidst these challenges, pharmaceutical companies like Moderna have played a crucial role in developing vaccines to combat the virus. In this article, we will explore Moderna's plans and expectations for US Covid vaccine production.

Moderna's Forward-Looking Statements

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Moderna has made forward-looking statements regarding its plans to ramp down manufacturing at Lonza's site in Visp, Switzerland. The company also expects to continue manufacturing Covid-19 vaccines and anticipates Covid-19 vaccine sales of $6 billion to $8 billion for 2023. These projections are subject to various risks and uncertainties, including those described in Moderna's Annual Report on Form 10-K for the year ended December 31, 2022.

Manufacturing Capacity

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Moderna is grateful for Lonza's support in helping to scale up and meet manufacturing demands during the pandemic. However, the company plans to resize its manufacturing footprint to accelerate gross margin expansion towards its longer-term target of 75-80%. To achieve this goal, Moderna will absorb demand currently supported by Lonza at its internal manufacturing site in Norwood, MA for 2024-2025.

External Capacity

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Moderna maintains external drug substance capacity at Rovi in Spain. The company also expects to add additional capacity at its new mRNA manufacturing facilities in the UK, Canada, and Australia when completed. These investments will enable Moderna to meet growing demand for its vaccines while maintaining a strong supply chain.

Ramping Down Production

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Moderna plans to ramp down production of mRNA drug substance for its Covid-19 vaccine at Lonza's site in Visp, Switzerland, in Q3 2023. This move is part of the company's plan to right-size its manufacturing footprint in line with the resizing of the Covid-19 vaccine market due to the transition from a pandemic to an endemic market.

In summary, Moderna continues to play a significant role in US Covid vaccine production. The company's plans to ramp down manufacturing at Lonza's site and resize its manufacturing footprint are designed to accelerate gross margin expansion towards its longer-term target. With external capacity at Rovi in Spain and new mRNA manufacturing facilities in the pipeline, Moderna is well-positioned to meet growing demand for its vaccines while maintaining a strong supply chain.

Us covid vaccine production