Australia strikes deal with Moderna to manufacture mRNA vaccines

[SYDNEY] Australia will partner with Moderna to manufacture tens of millions of vaccine doses domestically, including Covid-19 mRNA shots, as the country seeks to bolster its pharmaceutical supply lines.

In a deal worth almost A$2 billion (S$2 billion), according to a report in The Australian newspaper, Moderna has finalised an agreement with the government to establish a "state-of-the-art" mRNA vaccine manufacturing facility in the state of Victoria. It could begin operation as soon as 2024, the company said in a statement Thursday (Mar 24).

"This means an Australian shot in the arm for our pandemic preparedness, for Australia's health but also for the future of Australian manufacturing in the medical sphere," Prime Minister Scott Morrison told reporters in Melbourne.

The facility is expected to produce about 100 million vaccine doses annually when operational, for a range of respiratory illnesses including Covid-19, seasonal influenza and other potential respiratory viruses. Australia is the first country outside the US to reach an onshore manufacturing agreement with Moderna, the company said.

As part of the deal, Moderna said it will work with Australia's research industry to collaborate on mRNA development, including a research centre into respiratory and tropical diseases.

The Morrison government was regularly criticised throughout the pandemic for failing to move quickly enough to secure medical supplies to tackle the virus, especially Covid-19 vaccines in early 2021 and then testing equipment early this year.

With an election due to be held by May 21 under Australian law, both Morrison and his opponent Labour leader Anthony Albanese have made domestic manufacturing and self-reliance a major part of their pitches to voters. Morrison is currently trailing the opposition in opinion polling. BLOOMBERG