Moderna Losses $600M US Bird Flu Vaccine Contract

DLHA Staff Writer

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FRIDAY, May 30, 2025 — Moderna, Inc., an American pharmaceutical and biotechnology company based in Cambridge, Massachusetts, USA, one of the world’s leading pioneer of RNA therapeutics, primarily mRNA vaccines has lost a $600 million contract with the US Department of Health and Human Services.

The Robert F Kennedy Jnr. led Department recently notified Moderna that it is canceling the contract with the company to develop, test, and license vaccines for flu subtypes, including the dangerous H5N1 bird flu virus.

mRNA vaccines use a copy of a molecule called messenger RNA to carry instructions for proteins to produce an immune response.

The contract was originally signed with the Biden administration and aimed to prepare for future flu pandemics by funding Moderna’s work on a fast-acting vaccine using mRNA technology, STAT News reported.

With the ascent of the Trump Administration, Moderna anticipated the cancellation of the contract as the new HHS leadership informed the company in February that it was reviewing the contract.

The move is seen by many public health watchers as a significant blow to the capacity of the United States to respond rapidly to pandemic influenza.

HeathDay reports Rick Bright, former head of the Biomedical Advanced Research and Development Authority (BARDA), the agency that gave Moderna the funds, saying: “This is a huge mistake.”

"Much time, investment, and goodwill will be lost because of this short-sighted and politically charged decision,” he said.

Dr. Jesse Goodman, a former U.S. Food and Drug Administration (FDA) chief scientist, is also on record predicting that drug companies will be wary of working with the U.S. government in the future.

“Unless there is a clear reason for terminating the funding, not only will we be left less prepared, potentially risking the lives of millions, but vaccine and other innovators will question the reliability of U.S. government investments and partnerships, and may think twice about engaging in public health efforts for which there is no clear reward in terms of a marketed product,” Goodman said.

Moderna plans to “explore alternative paths forward for the program,” CEO Stéphane Bancel said in a statement.

Moderna, once valued at more than $215 billion, is now worth about $10 billion. The company’s stock has fallen 83% in the past year, according to STAT News.

Source: STAT News. HealthDay

Related: Expertise and Credibility Matter in Public Health Leadership

Published: May 30, 2025

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