11:07 AM EDT, 04/11/2024 (MT Newswires) -- (Updates with Moderna's ( MRNA ) confirmation and stock move in the last paragraph.)

Moderna ( MRNA ) is putting its plan to build a vaccine manufacturing plant in Kenya on hold as demand for the Covid-19 vaccine in Africa has diminished, the company told MT Newswires in an email Thursday.

"The demand in Africa for Covid-19 vaccines has declined since the pandemic and is insufficient to support the viability of the factory," a Moderna ( MRNA ) spokesperson told MT Newswires. "Moderna ( MRNA ) 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."

The company struck an agreement with the Kenyan government in 2022 to invest up to $500 million in constructing a vaccine production plant to supply up to 500 million doses annually.

Moderna ( MRNA ) shares were 2.5% lower in recent trading Thursday.

Price: 104.45, Change: -2.69, Percent Change: -2.51