HHS Terminates $590M Moderna Contract for Bird Flu Vaccine Development.

The U.S. Department of Health and Human Services (HHS) has officially canceled a $590 million agreement with Moderna, halting federal support for the late-phase development and potential purchase of the company’s investigational bird flu vaccine, mRNA-1018. The decision, announced by Moderna on May 28, raises questions about how the biotech giant will proceed with its pandemic preparedness initiatives.

Moderna initially secured the late-stage development deal during the final months of the Biden administration. The company began a phase 1/2 clinical trial of mRNA-1018—a vaccine candidate targeting hemagglutinin glycoproteins—in 2023. The HHS had previously awarded $176 million to Moderna for broader pandemic influenza vaccine research, and expanded the agreement to $590 million earlier this year.

However, the HHS recently rescinded the expanded funding, and with it, the government’s commitment to purchase pre-pandemic influenza vaccines from Moderna. The move came after the department began reevaluating the deal three months ago, shortly following Robert F. Kennedy Jr.'s appointment as head of the agency. Kennedy has publicly criticized mRNA vaccines in the past, referring to COVID-19 shots as "the deadliest vaccine ever made."

In tandem with the funding announcement, Moderna released early trial data for mRNA-1018. Of the 300 adults enrolled, only 2.1% had protective antibody levels at the start. Three weeks after receiving the second of two doses, 97.8% had levels above the protective threshold. The vaccine was well tolerated, with no significant safety concerns or severe reactions reported. The company plans to present more findings at an upcoming scientific conference.

Moderna had intended to use the HHS funds to advance mRNA-1018 into later stages of development. In light of the contract's termination, the company stated it is exploring alternative options aligned with its pandemic preparedness strategy. This development coincides with internal cost reductions, including a 19% cut in first-quarter R&D spending and plans to trim operating expenses by up to $1.7 billion.

Source:https://www.fiercebiotech.com/biotech/hhs-axes-modernas-590m-pandemic-bird-flu-vaccine-contract-cutting-funding-late-phase-trials

This is non-financial/medical advice and made using AI so could be wrong.