Moderna said on Friday it will not proceed with plans to build a messenger RNA manufacturing plant in Japan due to "changes in the business environment" around the world and in Japan.

The company has been battered by declining revenue from its COVID-19 shots and less-than-expected uptake of its respiratory syncytial virus vaccine, and has been banking on revenue from newer mRNA shots to make up for weak revenue.

The pharmaceutical industry is also weighed by concerns around regulations and policies following vaccine skeptic Robert F. Kennedy Jr.'s appointment as U.S. Health Secretary, as well as shifting U.S trade policies.

Moderna had begun development of the plant in Japan in 2023 at the Shonan Health Innovation Park in Kanagawa Prefecture. Moderna said it would reconsider the development of mRNA drug manufacturing facilities in Japan when the business environment improves.

However, Moderna has completed the construction of an mRNA drug research and manufacturing facility at the Shonan Health Innovation Park, the company said.

Japan's export-oriented economy is also under pressure from U.S. President Donald Trump's trade policies, which include a 25% tariff on Japanese imports, scheduled to take effect August  1, unless a trade agreement is reached.

While the current U.S. trade policies do not include tariffs on pharmaceutical products, the Trump administration has been considering separate tariffs for the industry, which could be as high as 200%.