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U.S. Cancels $766 Million Moderna Contract for H5N1 Bird Flu Vaccine Development

The U.S. Department of Health and Human Services (HHS) canceled a $766 million contract with Moderna...
Key Metrics

9.72

Heat Index
  • Impact Level
    Low
  • Scope Level
    National
  • Last Update
    2025-07-25
Key Impacts
Positive Impacts (2)
Egg Prices
GSK & Sanofi (traditional flu-vaccine producers)
Negative Impacts (16)
mRNA Biotech Segment
Moderna Inc. (MRNA)
U.S. Egg & Broiler Chicken Prices
Poultry & Egg Producers (e.g., Tyson Foods, Cal-Maine)
Chicken Meat (Broiler) Prices
U.S. Poultry Producers
Total impacts: 34 | Positive: 2 | Negative: 16
Event Overview

The U.S. Department of Health and Human Services (HHS) canceled a $766 million contract with Moderna to develop an H5N1 avian flu vaccine, reversing the Biden administration's earlier commitment. Announced in May 2025, the decision comes amid concerns about the virus's spread in farms and potential human transmission, with 70 U.S. cases and one fatality. Public health experts warn of the virus's high mortality rate (up to 54%) and mutation risks. Critics argue the move undermines pandemic preparedness, sparking debate over immediate needs versus long-term readiness.

Event Timeline
U.S. Cancels $766 Million Contract with Moderna for Bird Flu Vaccine Development
2025-06-06

The U.S. Department of Health and Human Services (HHS), under the Trump administration, has canceled a $766 million contract with Moderna to develop a vaccine for the H5N1 avian flu virus. This decision, announced in May 2025, reverses the Biden administration's earlier commitment to fund the development of a bird flu vaccine using Moderna's mRNA technology, the same platform that accelerated the production of COVID-19 vaccines. The Biden administration had allocated the funds in response to growing concerns about the spread of H5N1 in farms and its potential to infect humans, particularly farmworkers. Despite the low number of human cases—only 70 in the U.S. during the outbreak, with one fatality—public health experts warn of the virus's unpredictability and potential to mutate into a more contagious strain. The H5N1 virus has historically had a high mortality rate, reaching up to 54% in previous outbreaks. The Centers for Disease Control and Prevention (CDC) recorded 5.3 million cases of seasonal flu in the 2024 season, highlighting the potential devastation if H5N1 were to become similarly contagious. The FDA had approved three H5N1 vaccines since 2007, but none were a perfect match for current strains. The government had planned to update these vaccines, with up to 10 million doses potentially available if needed. Critics, including Dr. Peter Chin-Hong, argue that withdrawing funding undermines preparedness for future pandemics, especially given the lessons learned from COVID-19. The decision has sparked debate about the balance between immediate public health needs and long-term pandemic preparedness.

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