Trump Administration Terminates $590 Million Moderna Bird Flu Vaccine Deal, Dismantling Biden-Era Pandemic Preparedness Effort
The President Donald Trump administration terminated a nearly $600 million contract to Moderna Inc. (NASDAQ:MRNA) for developing an mRNA-based bird flu vaccine, ending a key former President Joe Biden-era pandemic preparedness initiative.
What Happened: Health and Human Services officials canceled Moderna’s $590 million contract for bird flu vaccine development, the company announced on Wednesday.
Moderna CEO Stéphane Bancel stated: “While the termination of funding from HHS adds uncertainty, we are pleased by the robust immune response and safety profile observed in this interim analysis of the Phase 1/2 study of our H5 avian flu vaccine and we will explore alternative paths forward for the program.”
The company reported that clinical testing in approximately 300 adults showed participants achieved nearly 98% immunity within three weeks of the second vaccine dose, with the treatment being generally well-tolerated.
Trump administration officials had previously indicated they were reviewing all contracts from the prior administration. Robert F. Kennedy Jr.-led HHS criticized the review as necessary due to “four years of the Biden administration’s failed oversight” of mRNA vaccine expenditures.
Why It Matters: The contract termination threatens pandemic preparedness as H5N1 continues spreading. The Biomedical Advanced Research and Development Authority awarded the January funds to create defenses against strains circulating in livestock and birds. This followed an earlier $176 million bird flu vaccine development award granted in July.
The CDC has confirmed 67 human bird flu cases since 2024, with the first U.S. death reported in Louisiana, highlighting the ongoing public health threat.
Other vaccine manufacturers are also developing bird flu vaccines, including Novavax Inc. (NASDAQ:NVAX) and CureVac N.V. (NASDAQ:CVAC), both with vaccines in clinical trials.
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