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

Core Viewpoint - The U.S. government has terminated its contract with Moderna for the late-stage development of an mRNA-based bird flu vaccine, impacting the company's funding and development plans [1][2]. Group 1: Contract and Funding - The Biden administration had awarded Moderna two contracts totaling $766 million, including $590 million for advancing vaccine development and $176 million to expedite vaccine development [2]. - The termination of the contract was anticipated due to a review of agreements made during the Biden administration by the Trump administration [3]. Group 2: Clinical Data and Future Plans - Despite the funding setback, Moderna reported positive interim data from a phase I/II study of its mRNA-1018 vaccine, showing an increase in protective antibody levels from 2.1% to 97.8% after the second dose among 300 participants [4]. - The company plans to present further clinical findings at an upcoming scientific conference and is exploring new paths for pandemic preparedness in light of the funding loss [5]. Group 3: Stock Performance and Market Sentiment - Year-to-date, Moderna's stock has decreased by 37%, contrasting with a 5% decline in the industry [6]. - Negative sentiment surrounding Moderna's stock has been exacerbated by recent FDA guidance limiting COVID-19 booster eligibility and the voluntary withdrawal of a regulatory filing for its COVID-19/influenza vaccine [8][9]. - The company is also working to reduce operating expenses and streamline its R&D pipeline amid these challenges [10].