Moderna (NASDAQ: MRNA) announced Wednesday that the Trump administration has canceled a major contract for the late-stage development of its bird flu vaccine and the government’s right to purchase future doses. The move halts a key federal partnership aimed at preparing for a potential H5N1 avian influenza outbreak.
In January, the Biden administration had granted Moderna $590 million to accelerate development of its mRNA-based bird flu vaccine and expand clinical trials for other pandemic influenza strains. This followed an earlier $176 million award from the U.S. Department of Health and Human Services (HHS) to support late-stage development.
The HHS previously confirmed that it was reassessing vaccine production contracts made during the Biden administration. The abrupt cancellation has drawn criticism from public health experts. Amesh Adalja of Johns Hopkins Center for Health Security called it a “shortsighted decision,” contrasting it with the rapid vaccine development efforts under Trump’s Operation Warp Speed during COVID-19.
Bird flu has infected at least 70 people over the past year, mainly farm workers, amid its continued spread across U.S. poultry and cattle farms. Controversial comments by Health Secretary Robert F. Kennedy Jr., who suggested letting the disease spread naturally among poultry, further stirred public and political debate.
Despite the canceled contract, Moderna remains committed to advancing its bird flu program. The company reported positive interim results from a mid-stage trial testing the safety and immune response of its H5-targeted vaccine. Moderna aims to find new paths for late-stage development and production, especially as it looks to offset declining COVID vaccine sales by expanding its mRNA product lineup.
Shares of Moderna remained flat in after-hours trading following the announcement.


Apple Forecasts Strong Revenue Growth as iPhone Demand Surges in China and India
SpaceX Reports $8 Billion Profit as IPO Plans and Starlink Growth Fuel Valuation Buzz
U.S. Vaccine Policy Shifts Under RFK Jr. Create Uncertainty for Pharma and Investors
Eli Lilly and Novo Nordisk Battle for India’s Fast-Growing Obesity Drug Market
Sanofi’s Efdoralprin Alfa Gains EMA Orphan Status for Rare Lung Disease
Keir Starmer Urges Prince Andrew to Testify in U.S. Epstein Investigation
Zelenskiy Awaits U.S. Details as Ukraine Prepares for Possible Peace Talks Next Week
Sandisk Stock Soars After Blowout Earnings and AI-Driven Outlook
Federal Judge Signals Possible Dismissal of xAI Lawsuit Against OpenAI
Trump Administration Gun Comments Spark Rift With NRA Ahead of Midterms
Panama Supreme Court Voids Hong Kong Firm’s Panama Canal Port Contracts Over Constitutional Violations
Faith Leaders Arrested on Capitol Hill During Protest Against Trump Immigration Policies and ICE Funding
Panama Supreme Court Voids CK Hutchison Port Concessions, Raising Geopolitical and Trade Concerns
Trump Threatens 50% Tariff on Canadian Aircraft Amid Escalating U.S.-Canada Trade Dispute
Bob Iger Plans Early Exit as Disney Board Prepares CEO Succession Vote
Hyundai Motor Lets Russia Plant Buyback Option Expire Amid Ongoing Ukraine War 



