Investing.com -- Shares in Moderna (NASDAQ:MRNA) moved higher on Wednesday after media reports said that the drugmaker had signed a memorandum of understanding and a land collaboration agreement with China to research and develop messenger RNA medicines in the country.
According to unnamed sources cited by Chinese media outlet Yicai, the total size of the investment will be around $1 billion.
The report added that the Cambridge, Massachusetts-based company is looking to communicate with Chinese regulators.
Moderna Chief Executive Officer Stéphane Bancel is in Shanghai to attend a signing ceremony for the investment, Yicai said. Bancel previously remarked that Moderna would be seeking opportunities with partners in China to boost the development of new technologies and products, Yicai noted.
An e-mailed statement from a Moderna spokesperson quoted by Reuters said that any medicines produced under this agreement will not be exported out of China. The person declined to give Reuters more details about the size and make-up of the deal.
The move gives Moderna a presence in mainland China for the first time, Reuters said. The group previously opened up an office in Hong Kong in 2022 in a bid to expand its presence in Asia.
It also comes as tensions bubble between Beijing and the U.S. over issues ranging from trade to national security. U.S. Treasury Secretary Janet Yellen is due to visit China this week in an attempt to re-establish ties of communication between the two countries.