The Trump administration has canceled its high-profile contract with Moderna Inc. for the development of a bird flu vaccine, formally ending a multi-million dollar deal intended to counter pandemic influenza threats. The company, a major player in mRNA vaccine technologies, had previously been awarded over $200 million to create a vaccine against avian influenza, a virus which continues to circulate in farm animals with sporadic outbreaks worldwide.
The $766 million contract, administered by the Biomedical Advanced Research and Development Authority (BARDA) under the U.S. Department of Health and Human Services (HHS), was focused on developing mRNA-1018—an mRNA-based vaccine targeting pandemic influenza viruses, including the H5N1 avian flu strain. This funding came atop a prior $56 million grant provided in the previous year to support vaccine testing and development efforts specifically for bird flu. The contracts were intended to enable research into up to five additional influenza virus subtypes beyond H5N1.
The cancellation, first reported in an article on Yahoo News, comes as the H5N1 virus spreads among farm animals globally and has more recently been detected in U.S. dairy farms. While only a handful of human infections have been documented—at least 70 cases and one death in the U.S., as per AP News—the virus has yet to exhibit sustained human-to-human transmission. Though health authorities, including the Centers for Disease Control and Prevention (CDC), have assessed general public risk as low, several American farmworkers have been affected.
The decision by HHS, led by Health Secretary Robert F. Kennedy Jr., halts planned funding installments, including $176 million granted in July 2024 and $590 million allocated in January 2025 for potential late-stage clinical trials. Secretary Kennedy, who has publicly voiced skepticism about mRNA vaccine technology despite its proven efficacy during the COVID-19 pandemic, was instrumental in pulling the funding. This move has introduced significant uncertainty into the future of Moderna’s pandemic influenza vaccine development.
Complicating the situation, the administration has announced plans to explore alternative avenues for both the development and manufacturing of bird flu vaccines. In addition, several federal employees overseeing the bird flu response were recently dismissed, and there has been a pause in the program monitoring milk quality for avian influenza contamination. These actions have raised questions about the nation’s preparedness for a potential influenza pandemic, especially as virologists warn that further mutations of H5N1 could accelerate its transmissibility in humans.
Moderna recently reported promising interim results for mRNA-1018, noting a robust immune response and favorable safety in a trial involving 300 healthy adults. However, without continued federal support, advancement to large-scale trials and eventual deployment may now face delays or indefinite suspension.
Financial markets reacted swiftly to the news. As of May 29, 2025, Moderna’s stock (MRNA) closed at $26.88, reflecting a 3.2% decline from the previous session. Trading volume for the day reached 8,082,078 shares, with a price range between $25.78 and $27.13. Investors expressed concerns about the company’s future government contracts and its portfolio beyond COVID-19 vaccine products.
The original article detailing this development was published under the title 'Flu vaccine development cancelled by Trump administration' and can be found on Yahoo News. For more information about the ongoing spread of avian influenza and related public health responses, see coverage by AP News.