Moderna Faces Setback as U.S. Terminates $766M Bird Flu Vaccine Contract.

Moderna has suffered a significant blow after the U.S. Department of Health and Human Services (HHS) terminated a nearly $766 million contract for the advancement of an mRNA-based bird flu vaccine. The decision, announced by the company on Wednesday, introduces further uncertainty to Moderna's vaccine pipeline at a pivotal moment for the firm.

The contract, originally awarded by the Biomedical Advanced Research and Development Authority in July 2024, initially provided $176 million to support the late-stage development of a vaccine targeting the H5 influenza virus. That agreement was expanded in January 2025, with an additional $590 million added to support work on up to five other pandemic influenza subtypes. The cancellation comes amid growing concern over a newer H5 strain that has heavily impacted both wild and domestic bird populations, crossed into cattle, and resulted in a few human cases—raising alarms about the virus's potential for human-to-human transmission.

Moderna CEO Stéphane Bancel acknowledged that the funding withdrawal adds complexity to the company's bird flu vaccine efforts. The setback coincides with heightened anticipation around the FDA’s upcoming review of Moderna’s next-generation COVID-19 vaccine, mRNA-1283, expected by the end of the month.

Compounding the pressure, the company recently withdrew its application for a combined flu and COVID-19 vaccine, known as mRNA-1083. While the vaccine showed superior performance compared to existing options, Moderna cited discussions with the FDA as the reason for the delay and indicated plans to refile the submission later this year after gathering additional efficacy data on a separate flu component.

The broader regulatory environment has shown signs of shifting, with ripple effects across the vaccine sector. For instance, the FDA missed its decision deadline for Novavax’s COVID-19 vaccine, ultimately granting approval in mid-May—six weeks late and with usage limitations.

Moderna has been grappling with declining revenue and rising losses. The company’s 2024 revenue dropped to $3.2 billion from $6.8 billion in 2023. Fourth-quarter results revealed a stark contrast: a $1.1 billion loss compared to a $217 million profit in the same quarter a year earlier.

Source:https://www.biospace.com/drug-development/moderna-loses-760m-government-bird-flu-contract-as-vaccine-uncertainties-mount

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