Bird flu threat is still shrouded, but HHS has just canceled its modern contract and can prepare for it
Moderna has temporary data, it said supports pushing its avian influenza vaccine into late-stage clinical trials, but the U.S. government canceled a federal contract to fund, a move that broke out with the so-called avian influenza outbreak nationwide.
The company said late Wednesday that the Department of Health and Human Services notified Moderna that it would terminate the contract, including the right to purchase a pre-pandemic flu vaccine.
The federal government often fundes the development and testing of drugs and vaccines that address public health threats. At the twisting speed, Modern Man received federal funding to develop its Messenger RNA Covid-19-19 vaccine Spikevax.
The traditional method of making vaccines by using eggs as growth medium for viruses takes a long time ahead. In contrast, mRNA vaccines offer the advantage of speed. Once the target pathogen is identified and sequenced, mRNA can be designed and produced quickly to resolve it. This faster turn time makes the mRNA vaccine attractive for pandemic preparation.
Last summer, the government's bird flu contract was initially awarded with a commitment of $176 million. In January, before President Trump took office, HHS expanded its contract to $590 million. Funding comes from HHS, Strategic Readiness and Response Government, and the Advanced Research and Development Bureau of Biomedical (Barda).
A modern vaccine candidate, named mRNA-1018, was tested on phase 1/2 for four different types or subtypes of bird flu. The company reported temporary results on Wednesday for about 300 Heathy adults who received a version of MRNA-1018 designed to address the H5 avian influenza virus subtype. The vaccine was used as two intramuscular injections, 22 days apart.
Moderna said the results show that mRNA-1018 shows a “fast, effective and durable immune response.” At baseline, pre-existing immunity is minimal. On day 43, three weeks after the second injection, 97.8% of participants showed antibody levels at or above the protection threshold. Moderna said the vaccine was tolerated by study participants, and most adverse reactions were classified as grade 1 or grade 2. The company plans to submit more detailed data for demonstration at future scientific conferences.
The cancellation of modern contracts does not completely stand out. Shortly after Robert F. Kennedy, Jr., was confirmed as the new HHS secretary, the department said it was reviewing the contract. Federal vaccine policy continues to change. The FDA and HHS have revised their policies on Covid-19-19 vaccines to support vaccination in large numbers in high-risk groups, such as the elderly. Earlier this week, HHS Secretary Kennedy announced that the Covid vaccine had been removed from the Centers for Disease Control and Prevention’s recommended immunization schedule for healthy children and healthy pregnant women, saying “It’s common sense, it’s good science.”
Moderna said in its first quarter 2025 financial results report that Spikevax revenue has declined year by year. The company attributes lower sales to lower vaccination rates as the Covid-19-19 vaccine market becomes a seasonal vaccine market with most demand occurring in the fall and winter. However, federal policies on COVID-19-19 vaccines may affect how insurers are covered and whether they are covered, which in turn may further erode Moderna’s revenue. At the end of the quarter, ModernA reported its cash position of $8.4 billion, down more than $1 billion from the end of 2024.
According to the latest CDC data, H5 Bird Flu is prevalent among wild birds around the world and has led to our outbreaks in poultry and cows. Among humans, the agency lists 70 cases of influenza in avians and one death. There are no reported cases of human-to-person transmission, and the CDC classifies public health risks as low. Meanwhile, Moderna said it will look for other ways to fund the late development and manufacturing of vaccines, “in line with the company's strategic commitment to pandemic preparation.”
“While the termination of HHS’ funding increases uncertainty, we are satisfied with the strong immune response and safety observed in the Phase 1/2 study of the H5 bird flu vaccine, and we will explore alternative paths to the program,” Moderna Ceo Ceo Ceo Ceo Ceo Bancel said in a prepared statement. “The clinical data in these pandemic influenza highlights the key role of mRNA technology as a countermeasure to emerging health threats.”
Photo: Thianchai Sitthikongsak, by Getty Images
