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Reuters, May 29, 2025
The Trump administration has terminated a $590 million contract with Moderna, initially awarded by the Biden administration in January, for the late-stage development of a bird flu vaccine and the option to purchase doses. This decision follows a $176 million award last year from the U.S. Department of Health and Human Services (HHS) to support Moderna’s mRNA-based H5N1 vaccine development.
An HHS review determined the project did not meet required scientific and safety standards, leading to the cancellation. This move has drawn criticism from experts like Amesh Adalja of Johns Hopkins, who argued that scrapping the contract undermines a critical tool for combating avian influenza, contrasting it with the proactive vaccine development under Trump’s Operation Warp Speed for COVID-19.
The cancellation comes amid a bird flu outbreak that has infected 70 people, primarily farm workers, over the past year, spreading rapidly among cattle and poultry. Health Secretary Robert F. Kennedy Jr. has expressed skepticism about vaccines and previously suggested allowing bird flu to spread in poultry flocks to study natural immunity, a stance that sparked controversy.
Moderna, facing declining demand for its COVID vaccine, had relied on its bird flu and experimental COVID-flu combination vaccines for future revenue. The company now plans to seek alternative pathways for the vaccine’s late-stage development and manufacturing.
Shares of Moderna were flat in after-market trading.
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