The Financial Times published a story recently that claims on October 1, which cited individuals with knowledge of the matter. Moderna (NASDAQ:MRNA) chose not to transfer its mRNA’s core intellectual property (IP) COVID vaccine to China. This decision caused fallout in discussions on the sale of vaccines in that country. As a result, Moderna stock increased.
According to two persons who were part of the conversations between 2020 and 2021, Moderna stock refused to give up the IP vaccination owing to commercial and safety concerns. The discussions took place between 2020 and 2021.
China mainly uses inactivated vaccines since the government has not yet approved any mRNA COVID-19 in the nation. The first mRNA COVID vaccine manufactured in China received regulatory clearance not in China but in Indonesia, which is not China’s native country.
A person who is close to the Moderna stock team in Greater China was quoted in a report by the Financial Times as saying that the company had “given up” on its previous efforts to enter the Chinese market due to China’s requirementthat it transfer the technology prior to marketing in the Asian country. This information was included in the report.
According to a report earlier published by Reuters in September, Moderna (NASDAQ:MRNA) CEO Stephane Bancel was reported to have said that the company had discussed the possibility of delivering COVID-19 vaccinations with the Chinese government but that no decision had been made.
Recently, The Financial Times reported in an article that Beijing has taken one of two approaches to allow foreign COVID vaccines to be distributed in China. According to the report, the companies must either establish a manufacturing facility in China with a local partner while maintaining control of the primary technology or undertake a complete technology transfer to a domestic drugmaker. According to the investigation, Moderna stock faced significant pressure to go with the transfer technology choice.
Despite China’s best attempts, Moderna stock rose when the company said it would not give up its mRNA COVID vaccination technology.
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