Moderna revealed on Wednesday that the Trump administration has terminated its contract to develop a human bird flu vaccine and the associated option to buy vaccine doses. Following the announcement, Moderna’s stock remained steady during after-hours trading.
Initially, in January, the Biden administration had granted Moderna $590 million to continue its work on the bird flu vaccine and to fund clinical trials for additional strains of potential pandemic influenza. This funding came on top of the $176 million Moderna received from the Department of Health and Human Services (HHS) the previous year, aimed at advancing the late-stage development of a pre-pandemic mRNA vaccine for the H5N1 avian flu.
HHS previously indicated to Reuters that it was re-evaluating contracts established during the Biden administration concerning vaccine production. In a statement, an HHS spokesperson explained that the decision to cancel the contract was made after a detailed internal review concluded the project failed to meet necessary scientific and safety standards for ongoing federal support.
Amesh Adalja, a senior scholar at the Johns Hopkins Center for Health Security, criticized the move, describing it as a missed opportunity to retain a crucial tool for addressing a potential bird flu outbreak. Adalja suggested the decision marked a stark departure from the proactive approach the government took with Operation Warp Speed during the COVID-19 pandemic.
In the past year, bird flu has infected approximately 70 individuals, mostly farm workers, as it spread widely among cattle and poultry populations. U.S. Health Secretary Robert F. Kennedy Jr. has expressed skepticism about vaccines and faced criticism earlier this year for suggesting in a television interview that poultry farms should allow the bird flu to spread unchecked, arguing that it might help identify naturally resistant chickens.
Moderna announced plans to explore alternative paths for the continued development and manufacturing of the vaccine. The company has been relying on revenue from its newer mRNA vaccines, such as the bird flu shot and an experimental combination COVID-flu vaccine, to offset declining demand for its original COVID-19 vaccine.
