Secrecy and monopoly concerns shadow Moderna’s mRNA facility

Australia’s first large-scale mRNA manufacturing facility promises significant economic and health dividends, but critics warn it gives one global company an unprecedented commercial advantage at the expense of transparency and competition.

A new report commissioned by Moderna suggests the manufacturing facility could contribute $220 million annually to Australia’s GDP, support nearly 1,000 ongoing jobs, and provide pandemic preparedness benefits valued at up to $4.8 billion over the next 30 years.

The manufacturing hub was established under a $2 billion deal between the Morrison government and Moderna in May 2021. With a recently granted Good Manufacturing Practice (GMP) licence from the Therapeutic Goods Administration (TGA), the facility is expected to deliver its first mRNA vaccines in the coming months.

Under the confidential 10-year Morrison-Hunt agreement, the government has promised a streamlined vaccine procurement process exclusively for Moderna’s pandemic and non-pandemic vaccines outside the National Immunisation Program (NIP) – a move Dr Monique Ryan MP, Independent member for Kooyong, has described as deeply concerning.

“It is a commercial leg-up for one company in what is a very competitive non-pandemic vaccine market. The government’s arrangement with Moderna is the biggest change to vaccine procurement in Australian history,” emphasised Dr Ryan.

“It gives one single company access to expedited procurement processes, remembering that it takes on average 3.8 years for [funding] new vaccines in this country. In doing so, this agreement disadvantages other vaccine manufacturers. It creates a disincentive for other companies to invest or expand here.”

Australia’s COVID-19 vaccine rollout relied heavily on overseas manufacturers, exposing vulnerabilities in national and international medical supply chains. These concerns, noted in the government’s COVID-19 Response Inquiry Report, have driven a push for sovereign vaccine capabilities.

The Moderna-commissioned report highlights the role of the Moderna Technology Centre in Melbourne (MTC-M), which has the capacity to produce up to 100 million vaccine doses per year.

Yet concerns persist. Dr Helen Haines MP, Independent member for Indi, echoed Dr Ryan, warning of the secrecy surrounding the deal.

“The parliament and the public do not know what Australia is paying, how much vaccine we are guaranteed or on what terms, and that’s simply not good enough. This was a decision made by the Morrison government, but, critically, this secrecy continues, now, into this Labor government,” Dr Haines stressed.

“The government has committed to annual minimum purchases of Moderna’s vaccines…[and] proposed an independent health technology assessment pathway, but this pathway has not yet been established. So one multinational pharmaceutical company has been granted a regulatory light touch, but this light touch won’t be available to Australian firms or, indeed, to other vaccine producers. Why?”

Victorian Minister for Economic Growth and Jobs & Minister for Finance, Danny Pearson, said “This is a once-in-a-generation investment in jobs, medical research and health security, positioning Victoria and Australia at the heart of advanced biomedical innovation. This facility will strengthen our health system, support jobs, and deliver vaccines that Australians can rely on to help protect us against existing and emerging diseases.”

Moderna has also committed to investing an estimated $266 million directly in national mRNA research and development between 2023 and 2033. This funding will support research partnerships, clinical trials, and workforce development, generating an additional $267 million in economic value nationally over ten years, including $117 million in Victoria alone.

Michael Azrak, General Manager of Moderna Australia and New Zealand, said “In a public health emergency, local matters. By investing in sovereign mRNA capability in Melbourne, Moderna is ensuring mRNA vaccines are made in Australia, for Australians.

“We recognise the critical role of the local mRNA sector in strengthening Australia’s health and economic resilience, and we are committed to working with industry and government to build this and deliver on the health and economic benefits outlined in this report.”

Dr Ryan stressed the need for transparency, saying “We need our government to always act in the public’s best interest, with honesty and transparency. That is more important than ever when it comes to healthcare.”

The ANAO’s audit report on the effectiveness of the 2021–22 procurement of Moderna’s onshore mRNA vaccines is due in October.

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