New deal to make Victoria global vaccine powerhouse

A landmark billion-dollar deal will see Victoria become one of the world’s biggest vaccine producers and a mega-producer of mRNA jabs.

Victoria will be the home of a world-leading mRNA vaccine factory in a landmark deal struck by the federal and state governments with pioneering biotech giant Moderna.

The mRNA factory will be able to produce 25 million doses a year from 2024 – and up to 100 million in future pandemics – to protect Australians from emerging threats as well as existing diseases including the flu.

Prime Minister Scott Morrison will unveil the agreement with Acting Premier James Merlino on Tuesday after Victoria fought off strong bids from other states.

The deal, believed to be worth several billion dollars, bolsters Australia’s status as the southern hemisphere’s biggest vaccine producer and positions Melbourne to be the first place outside of Europe and the US to make mRNA vaccines.

“Melbourne is now rightly known as a global leader in medical research and so it was the natural location for the new mRNA facility with an established workforce with the right skills and investment,” Mr Morrison said.

Moderna is already supplying 25 million doses of its Covid vaccine to Australia, including its booster shot that was approved at the weekend.

Victoria will be the home of a world-leading mRNA vaccine factory. Picture: AFP.

The US company has spearheaded development of the mRNA platform, which sends instructions to cells in the body to make proteins that can prevent diseases.

As part of the agreement, Moderna will make Melbourne its Asian research hub, with Australia given priority access to any new vaccines it creates, as well as therapeutics that can be used in the treatment of other diseases such as cancer.

Moderna already has mRNA vaccines in the works for influenza, HIV and the zika virus, as well as a potential one-shot vaccination to protect against Covid-19 and the flu, and will now carry out clinical trials in Australia.

“This deal recognises that the home of Australian mRNA expertise is right here in Victoria,” Victorian Medical Research and Innovation Minister Jaala Pulford said.

Moderna Australia general manager Michael Azrak said the company was “proud to be at the forefront of mRNA vaccine development” and looked forward to starting work in Australia.

Mr Morrison said the in-principle deal – the terms of which have been kept under wraps – would “continue to secure Australia’s future economic prosperity while protecting lives”.

While a site for the factory has not yet been chosen, it is expected to create up to 500 jobs during construction and another 500 ongoing roles.

In an effort to land the deal, the state government set up mRNA Victoria with a $50m budget.

“This is a huge announcement not just for Victoria, but the whole country – being able to manufacture mRNA vaccines and treatments locally will lock in vaccine security both on our shores and across our region,” Mr Merlino said.

Federal Health Minister Greg Hunt praised Moderna’s efforts to develop the “cutting edge science” which has been used around the world for the first time during the pandemic.

“Ensuring Moderna has a manufacturing presence here will deliver Australia priority access to products manufactured here in Australia, by Australians, for Australians,” he said.

On Tuesday, the federal government will also promise $25m to domestic research projects to further develop Australia’s mRNA industry, including clinical trials of other mRNA vaccines.

Moderna has been searching for an Asian base after German giant BioNTech – which partnered with Pfizer to develop its Covid vaccine – vowed to set up shop in Singapore.

Finance Minister Simon Birmingham said the company’s presence in Australia would deliver “investment and opportunities for the entire research sector”.

The federal and state governments hope to finalise the contract with Moderna early next year.

Originally published as New deal to make Victoria global vaccine powerhouse