The U.S. government abruptly terminated Moderna’s $766 million avian flu vaccine program, canceling a $590 million Biden-era contract for late-stage development and a $176 million HHS agreement for H5N1 subtype testing.
This decision removes federal support for what experts considered one of the most promising rapid-response tools against the spreading bird flu outbreak, which has infected 70 farm workers amid unprecedented cattle transmission.
What Next for Moderna?
Moderna confirmed the contract cancellation Wednesday while announcing positive Phase 2 data for its mRNA-based H5 vaccine. The company stated it would seek alternative pathways to advance development, crucial for diversifying beyond declining COVID-19 vaccine revenue. Shares remained stable post-announcement as investors weighed the loss against Moderna’s pipeline, including a COVID-flu combo vaccine in trials.
The termination reverses Biden’s January initiative to stockpile avian flu shots, with HHS citing unmet “scientific standards and safety expectations.” Critics like Johns Hopkins’ Amesh Adalja likened the move to abandoning Operation Warp Speed’s urgency, while Health Secretary Robert F. Kennedy Jr. faces scrutiny for controversial remarks suggesting uncontrolled poultry infections could provide natural immunity data.
The program’s cancellation timing comes as H5N1 spreads through 42 cattle herds across nine states, with the CDC monitoring elevated risks to agricultural workers. Moderna’s mRNA platform—proven during COVID—offered potential for rapid adaptation to emerging strains, leaving public health experts questioning the government’s preparedness strategy as the virus evolves.
