Moderna Loses $700M US Contract for Bird Flu Vaccine Development

Moderna announced Wednesday that the Trump administration has canceled a major contract worth nearly $700 million for the development of its bird flu vaccine.

This decision ends a key pandemic preparedness project started during the Biden administration.

In January, Moderna received $590 million from the US government to support clinical trials and build a vaccine for H5N1, the bird flu virus that's been spreading among cattle and poultry.

According to Reuters, the funding followed an earlier $176 million award given in 2024 for the same purpose.

The US Department of Health and Human Services (HHS) said it ended the agreement after a full internal review.

A spokesperson explained, "The project did not meet the scientific standards or safety expectations required for continued federal investment."

Moderna's early data from testing showed strong results. In a study with around 300 adults, 98% of participants developed immunity within three weeks of the second shot.

Moderna CEO Stéphane Bancel said the vaccine was "well-tolerated" and produced a "robust immune response."

Moderna to Push Bird Flu Vaccine Without Federal Funding

Despite the promising findings, the federal government pulled its support. Public health expert Amesh Adalja from Johns Hopkins Center for Health Security said canceling the deal "throws away one of the fastest tools we have" to fight a possible bird flu outbreak.

He also noted the decision goes against the earlier rapid-response approach used during COVID-19.

Bird flu has infected at least 70 people in the past year, most of them farm workers. It continues to spread among animals, raising concerns about a future outbreak in humans, AP News said.

Health Secretary Robert F. Kennedy Jr. has questioned vaccine use and previously suggested letting the virus spread in poultry to study natural resistance. His remarks were criticized by some members of Congress.

Moderna said it still plans to move forward with its bird flu vaccine. The company will look for other ways to continue late-stage development and production. "We will explore alternative paths forward for the program," Bancel added.

The company has been counting on its new mRNA vaccines—including the bird flu and a COVID-flu combo shot—to replace falling demand for its original COVID-19 vaccine.

Moderna's stock price did not change much after the announcement, staying mostly flat in after-hours trading.

Originally published on vcpost.com