Moderna Strikes mRNA Drug Pact With Chinese Authorities: Report

Moderna Inc MRNA reportedly struck a deal with Chinese authorities to research, develop, and manufacture messenger RNA (mRNA) medicines in the country.

China's struggle with developing mRNA technology domestically during the pandemic, and its recent approval of its first mRNA shot, set a critical backdrop for this deal. 

Moderna's agreement with China represents its first for developing mRNA medicines, not just COVID vaccines. 

Previously, the company had expressed interest in selling its mRNA COVID vaccine to China, and it refused to hand over to China the core intellectual property related to the development of its famed COVID-19 vaccine.

Moderna has signed a memorandum of understanding and a related land collaboration agreement to develop drugs intended exclusively for the Chinese market and not for export, according to reports citing a Moderna spokesperson. 

The size of the deal, however, remains undisclosed, but the development was reported following the news that Moderna is planning its first investment in China, potentially valued at around $1 billion, according to Chinese media outlet Yicai. 

The report also mentioned the visit of Moderna's CEO, Stéphane Bancel, to Shanghai.

Moderna's venture into mainland China builds upon the firm's previous expression of interest in exploring opportunities in the country. 

In May, the company announced it was registering a legal entity in the world's second-largest economy, Reuters reported. Before this, Moderna's only presence in the region was an office in Hong Kong, established last year as part of its Asian expansion strategy.

This significant move coincides with a sharp slowdown in Moderna's revenue growth due to decreased global demand for its COVID-19 vaccine, the company's only approved product.

Amid dwindling sales from the COVID-19 vaccine, the company's only marketed product, Moderna said it plans to have combination vaccines available by 2025. It expects six major vaccine product launches in the next few years. 

Price Action: MRNA shares are up 2.07% at $124.25 on the last check Wednesday.