HHS terminates US$766M Moderna bird flu vaccine deal

USA— The US Department of Health and Human Services (HHS) has abruptly terminated a US$766 million contract with Moderna, which was aimed at advancing the development of an mRNA vaccine targeting avian influenza, commonly known as bird flu.

This contract, initially awarded in July 2024 with a US$176 million grant from the Biomedical Advanced Research and Development Authority (BARDA), was later expanded by an additional US$590 million in January 2025, bringing the total funding to US$766 million.

The funds were intended to support the late-stage development and potential procurement of Moderna’s vaccine candidate, mRNA-1018, designed to combat the H5 influenza virus subtype, which can infect humans through transmission from birds.

Moderna recently announced promising interim results from a Phase I/II clinical trial involving 300 healthy adults aged 18 and older.

The vaccine showed a rapid, potent, and durable immune response, with 97.8% of participants achieving protective antibody levels three weeks after the second dose.

The vaccine was generally well tolerated, with mostly mild to moderate side effects reported.

Despite these positive findings, the HHS decision to withdraw funding introduces uncertainty about the vaccine’s future development.

The contract cancellation reflects a broader shift within the HHS under the leadership of Health Secretary Robert F. Kennedy Jr., who is known for his skepticism toward vaccines, including mRNA technology.

 This policy change marks a significant departure from previous federal support for vaccine development, including efforts during the COVID-19 pandemic where mRNA vaccines played a critical role.

The threat of avian influenza remains a concern in the US, with ongoing outbreaks affecting wild birds, poultry, and even dairy cows.

 Although the US Centers for Disease Control and Prevention (CDC) has stated that the public health risk to humans is currently low, there was a fatal human case reported in January 2025.

Researchers worry that mutations in the virus could increase its ability to spread among humans, potentially triggering a pandemic.

In response to the contract termination, Moderna’s CEO Stéphane Bancel expressed disappointment but reaffirmed the company’s commitment to pandemic preparedness.

He emphasized the importance of mRNA technology as a vital tool against emerging health threats and stated that Moderna will seek alternative paths to continue the development and manufacturing of the H5 vaccine program.

Additionally, Moderna recently withdrew its application to the US Food and Drug Administration (FDA) for approval of a combined COVID-19 and influenza vaccine, citing plans to resubmit later in the year with enhanced data from its influenza vaccine candidate, mRNA-1010, which is currently in Phase III trials.

The HHS contract cancellation does not directly affect this other vaccine program, but future funding reallocations remain uncertain.

This development coincides with the Trump administration’s recent announcement that the CDC will no longer recommend COVID-19 vaccines for healthy children and pregnant women, signalling a broader reevaluation of vaccine policies in the US.

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