United States terminates over $900 million worth of funding for Moderna's avian influenza vaccine project.
WASHINGTON - The Trump administration has decided to terminate a contract awarded to Moderna for the late-stage development of its bird flu vaccine for humans, as well as the right to purchase doses, the drugmaker announced on May 28. Shares of Moderna remained unchanged in after-market trading.
Initially, Moderna was granted $590 million by the Biden administration in January to advance the research and development of its bird flu vaccine, and support the expansion of clinical studies for up to five additional subtypes of pandemic influenza. This was in addition to $176 million awarded by the U.S. Department of Health and Human Services (HHS) in 2024 to complete the late-stage development and testing of a pre-pandemic mRNA-based vaccine against the H5N1 avian influenza.
However, following a review of agreements made by the Biden administration for vaccine production, HHS informed Reuters earlier in 2025 that they were investigating the contracts.
A spokesperson for HHS cited concerns about the safety, integrity, and trustworthiness of mRNA technology in explaining the decision to cancel the contract. The spokesperson considered mRNA technology to be under-tested and expressed a desire to avoid past mistakes of concealing safety concerns from the public.
The decision to terminate the contract was also influenced by Health Secretary Robert F. Kennedy Jr., who is known for being skeptical of vaccines, particularly mRNA formulations, and has recently played a role in shaping other vaccine-related policy changes.
Bird flu has infected 70 people, mostly farm workers, over the past year as it has spread among cattle herds and poultry flocks. Health Secretary Kennedy's skepticism of vaccines, as well as his past comments regarding the spread of bird flu among poultry farms, have been met with criticism from some members of the U.S. Congress.
Moderna stated it plans to explore alternatives for the late-stage development and manufacturing of the vaccine. The company hopes to rely on revenue from its newer mRNA shots, including the bird flu vaccine and an experimental Covid-flu combination vaccine, to compensate for the waning demand for its Covid-19 vaccine post-pandemic.
On May 28, Moderna also announced it had received positive interim data from a mid-stage trial aimed at testing the safety and efficacy of its bird flu vaccine targeting the H5 avian influenza virus subtype.
- The termination of Moderna's contract for the development of its bird flu vaccine raises questions about the broader realm of health and wellness, particularly the safety and integrity of mRNA technology, which has been under scrutiny in political discussions.
- In the realm of general news, doubts about the safety of mRNA vaccines, as expressed by Health Secretary Robert F. Kennedy Jr., have sparked debates in the domain of medical-conditions, influencing policy changes and affecting the future of vaccine production, including Moderna's plans for its bird flu vaccine.
- As Moderna explores alternatives for the late-stage development and manufacturing of its bird flu vaccine, the financial implications of this decision and the potential impact on investments in health-and-wellness sectors, such as vaccine production, are matters of concern in the field of finance.
