Moderna Ramps Down Mrna Drug Substance Production For Its Covid-19 Vaccine At Lonza

September 19, 2023

Moderna will ramp down production of mRNA drug substance for its COVID-19 vaccine at Lonza’s site in Visp, Switzerland, in Q3 2023. This 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 move from a pandemic to an endemic market. Moderna expects to absorb the demand currently supported by Lonza at its internal manufacturing site in Norwood, MA for 2024 – 2025. In 2025, Moderna expects additional capacity at its new mRNA manufacturing facilities in the UK, Canada, and Australia when completed. Moderna continues to maintain external drug substance capacity at Rovi in Spain.

Moderna is grateful for Lonza’s support in helping to scale up and meet the manufacturing demands during a global public health emergency. Lonza’s activities in Visp have been crucial in enabling Moderna to deliver its vaccine worldwide, including Switzerland.

At R&D Day, Moderna announced that it continues to expect 2023 COVID-19 sales of $6 billion to $8 billion, dependent on U.S. vaccination rates. While 2023 cost of sales remain elevated, the Company is currently resizing its manufacturing footprint and supply base to accelerate gross margin expansion towards its longer-term target of 75-80%.

Forward-Looking Statements

This statement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding: Moderna’s plans to ramp down manufacturing at Lonza’s site in Visp, Switzerland; Moderna’s future manufacturing of COVID-19 vaccines; Moderna’s anticipated COVID-19 vaccine sales for 2023, the factors impacting potential sales; and Moderna’s cost of sales and expected margins for 2023. The forward-looking statements here are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond Moderna's control and which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties, and other factors include those other risks and uncertainties described under the heading "Risk Factors" in Moderna's Annual Report on Form 10-K for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (SEC) and in subsequent filings made by Moderna with the SEC, which are available on the SEC's website at Except as required by law, Moderna disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise. These forward-looking statements are based on Moderna's current expectations and speak only as of the date of this press release.