Famed COVID-19 vaccine maker Moderna Inc (MRNA  ) has decided to pause its plans to construct a vaccine manufacturing plant in Kenya, signaling a shift away from investing in pandemic preparedness in Africa as demand for COVID-19 vaccines wanes.

"Moderna has not received any vaccine orders for Africa since 2022 and has faced the cancellation of previous orders, resulting in more than $1 billion in losses and write-downs," it said.

"Given this, and in alignment with our strategic planning, Moderna believes it is prudent to pause its efforts to build an mRNA manufacturing facility in Kenya," the company said.

"This approach will allow Moderna to better align its infrastructure investments with the evolving healthcare needs and vaccine demand in Africa."

In March 2022, Moderna entered into a Memorandum of Understanding with the Government of the Republic of Kenya to establish Kenya as the location for the company's mRNA manufacturing facility.

The company expected to invest about $500 million in the Kenyan facility and supply as many as 500 million doses of mRNA vaccines to the continent each year.

In March 2023, Moderna finalized an agreement to establish an mRNA manufacturing facility in the Republic of Kenya, making it its first mRNA manufacturing facility in Africa.

In a statement to the Financial Times, Moderna confirmed it had "paused its efforts" to build a vaccine plant in Kenya. "The demand in Africa for COVID-19 vaccines has declined since the pandemic and is insufficient to support the viability of the factory," it said.

Efforts from senior officials, including Kenyan President William Ruto, aimed at finalizing the deal were in vain. Despite tax breaks and reduced investment requirements from the Kenyan government, Moderna has stalled on purchasing land in the Tatu City economic zone, where costs are around $1 million per acre. The company confirmed the pause, citing declining demand for Covid-19 vaccines in Africa.

Alfred Mutua, Kenya's tourism minister, clarified that while the agreement is partially terminated, it has been put on hold for evaluation.

Tuesday, Moderna shares jumped after the company shared the AACR 2024 annual meeting poster presentation of mRNA-4157 (V940) individualized neoantigen therapy plus Merck & Co Inc's (MRK  ) Keytruda (pembrolizumab) in advanced unresectable HPV-negative head and neck carcinoma.

Price Action: MRNA shares are down 1.48% at $105.55 on the last check Thursday.