Winning Bizness Desk
Mumbai. The Trump administration has rescinded a crucial federal contract awarded to Moderna for the final-stage development of its bird flu vaccine. The deal, worth $176 million, was intended to support Moderna's efforts to develop an mRNA-based vaccine targeting the H5N1 strain of avian influenza. This decision effectively halts the previous administration’s commitment to the vaccine’s final-stage trials and associated test operations.
Shot purchase rights also revoked
In addition to canceling the contract, the administration also revoked Moderna’s right to supply bird flu vaccine doses to the federal government. Moderna had previously been at the forefront of the COVID-19 response with its successful mRNA-based vaccine. The latest decision is expected to impact the timeline and preparedness for a potential H5N1 outbreak response in the United States.
Biden administration steps in with renewed funding
In contrast to the Trump administration’s withdrawal, the Biden administration, in January 2025, allocated $590 million to support the advancement of Moderna’s bird flu vaccine program. This funding aims to strengthen preparedness against pandemic influenza, particularly focusing on H5N1. The move underscores a shift in approach between the two administrations in handling emerging infectious disease threats.
Earlier funding supported mRNA vaccine trials
The original $176 million funding, granted in 2024, was directed by the U.S. Department of Health and Human Services to help Moderna complete final-stage development and clinical testing of its H5N1 avian influenza vaccine. Moderna had been working on its candidate vaccine, mRNA-1018, which targets a subtype of the H5 virus. The company had reported positive interim safety data from its early trials.
Moderna explores alternative plans
Following the contract’s cancellation, Moderna announced that it is now evaluating alternative pathways to continue the vaccine’s development. The company reaffirmed its commitment to advancing pandemic preparedness and stated that it had received encouraging data supporting the safety of its H5-targeted vaccine, which remains under further analysis.
H5N1 cases surface in the US
The H5N1 bird flu virus came under renewed scrutiny in April 2024 when the first human cases were detected in the United States. Since then, over 70 individuals have been infected—primarily workers exposed to poultry and other birds. So far, there has been no verified human-to-human transmission, suggesting limited risk to the general public but a higher threat to individuals in close contact with birds.
Broader influenza research also funded
According to *The New York Times*, part of the earlier $176 million fund had been designated for the study of five additional influenza subtypes. The broader goal was to enhance vaccine readiness across a range of potential pandemic strains. Moderna’s work on mRNA-1018 is part of a longer-term strategy to apply mRNA technology to a broader set of infectious diseases.
Story in a nutshell:
1. Trump administration canceled a $176 million contract with Moderna for H5N1 bird flu vaccine development.
2. The agreement also included rights for the U.S. to purchase vaccine doses, now withdrawn.
3. Moderna had been developing an mRNA-based vaccine, mRNA-1018, for the H5N1 virus.
4. The Biden administration later provided $590 million in renewed funding for pandemic flu preparedness.
5. Over 70 human cases of H5N1 bird flu were reported in the U.S. in 2024, mostly among poultry workers.
6. No evidence of human-to-human transmission has been found, but risk remains for those handling birds.
7. Moderna is exploring alternative plans to continue its vaccine development independently.
