Moderna Inc. has terminated plans to build a large-scale mRNA drug manufacturing facility in Japan’s Kanagawa Prefecture, just over a year after first announcing the project. The plant was intended to enhance Japan’s domestic vaccine supply resilience and support Moderna’s expansion in Asia. However, the company cited a “deteriorating global and domestic business climate,” highlighting shrinking revenues from COVID-19 vaccine sales, slower-than-expected uptake of its new RSV (respiratory syncytial virus) vaccine, and broader economic headwinds. Trade and regulatory pressures—especially from the U.S., where the pharmaceutical sector faces potential tariffs of up to 200%—have further complicated long-term investment strategies. The company also acknowledged concerns around policy instability, which has eroded confidence in sustaining new infrastructure projects.
Although the broader expansion has been shelved, Moderna confirmed the completion of a smaller-scale research and production hub at the Shonan Health Innovation Park, which will continue to operate. This decision comes amid heightened industry anxiety following the appointment of Robert F. Kennedy Jr.—a known vaccine skeptic—as U.S. Health and Human Services Secretary, a move that has unsettled biotech investors. The company’s shift reflects a broader retreat by pharmaceutical firms from high-risk international projects, particularly in regions where policy support is waning or inconsistent. Japan had hoped to attract more biotech R&D through domestic production partnerships, but Moderna’s exit may signal growing investor hesitation in an era of post-pandemic volatility, geopolitical tension, and changing public health priorities. More