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U.S. Govt. Cancels $766M Funding Contract for Moderna's Bird Flu Shot

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Moderna (MRNA - Free Report) recently announced that the U.S. government has terminated the previously-awarded contract for the late-stage development of an mRNA-based bird flu vaccine, as well as the right to purchase this vaccine.

The Biden administration had awarded two contracts to Moderna over the past year. This includes $590 million in funding earlier this year to advance vaccine development, including the expansion of clinical studies for up to five additional pandemic influenza subtypes. Another contract worth $176 million was awarded to the company last year to expedite vaccine development.

This announcement did not come as a surprise since the Trump administration had previously announced that it was reviewing the agreements made during the Biden era for vaccine production.

Despite the funding setback, Moderna shared encouraging interim data from a phase I/II study on mRNA-1018, its experimental vaccine targeting H5 and H7 avian influenza viruses. Among the 300 adult participants, only 2.1% initially showed protective levels of antibodies. However, that figure surged to 97.8% three weeks after participants received the second of two doses. Per the company, the vaccine demonstrated a favorable safety profile, with no significant tolerability issues reported.

Moderna plans to present additional clinical findings at an upcoming scientific conference. Although the vaccine was previously expected to progress to late-stage development with support from the U.S. government’s funding, the company now intends to explore new paths forward in line with its broader pandemic preparedness goals.

MRNA Stock Price Performance

Year to date, Moderna’s shares have plummeted 37% compared with the industry’s 5% decline.

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Recent Development With MRNA’s Stock

There is currently a negative sentiment around Moderna's stock, driven by a series of recent developments. Earlier this month, the FDA released updated guidance on COVID-19 vaccines, restricting booster eligibility for healthy individuals under 65 years — a move that could further reduce demand.

Adding to the uncertainty, Moderna voluntarily withdrew a regulatory filing with the FDA seeking approval for its COVID-19/influenza vaccine, after the agency requested additional efficacy data for the flu component. This setback derailed the company’s initial plans to secure a potential approval for the vaccine before this year’s end.

This funding setback also comes at a time when Moderna is actively working to scale back its operating expenses and streamline its R&D pipeline.

MRNA’s Zacks Rank

Moderna currently carries a Zacks Rank #3 (Hold).

Moderna, Inc. Price

Moderna, Inc. Price

 

 

 

 

 

 

 

Moderna, Inc. price | Moderna, Inc. Quote

Our Key Picks Among Biotech Stocks

A couple of better-ranked stocks from the industry are Adaptive Biotechnologies (ADPT - Free Report) and Agenus (AGEN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Adaptive Biotechnologies’ 2025 loss per share have improved from 92 to 87 cents. During the same timeframe, estimates for 2026 loss per share have narrowed from 69 to 65 cents.

Adaptive Biotechnologies’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 21.38%. Shares of ADPT have gained 53% year to date.

Agenus’ loss per share estimate for 2025 has narrowed from $6.43 to $2.78 over the past 60 days, and the same for 2026 has improved from $6.57 to $5.26 during the same period.

Agenus’ earnings beat estimates in two of the trailing four quarters and missed the mark on the other two occasions, delivering an average negative surprise of 22.71%. Year to date, its shares have gained 10%.


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