U.S. Awards Moderna $590M to Develop Bird Flu Vaccine

CAMBRIDGE, Mass. — Moderna Inc. announced Tuesday that it has secured a $590 million grant from the U.S. Department of Health and Human Services to accelerate the development of an mRNA-based vaccine targeting bird flu, as the virus continues to spread among poultry, dairy cows, and humans.

The funding will support the development of mRNA-1018, a vaccine candidate designed to combat the H5 and H7 avian influenza viruses. Moderna began testing the vaccine in healthy adults in 2023 and, based on positive preliminary results, is now advancing to a Phase 3 clinical trial.

The Centers for Disease Control and Prevention (CDC) reported that bird flu is widespread in wild birds globally and has caused outbreaks in U.S. poultry and dairy cows. Recent cases have also been detected in dairy and poultry workers, though the CDC maintains that the current public health risk remains low.

“This funding will help Moderna leverage its mRNA platform to address potential pandemic threats,” a company spokesperson said in a statement. The grant underscores the U.S. government’s commitment to preparing for future health crises, following lessons learned during the COVID-19 pandemic.

The bird flu outbreak has already impacted the U.S. food supply, with Cal-Maine Foods, the nation’s largest egg producer, reporting production limits due to the virus. Egg prices have risen as a result, adding economic strain to the agricultural sector.

Despite the announcement, Moderna’s stock remains nearly 65% lower over the past year, as demand for its COVID-19 vaccines has declined. Shares rose approximately 5% following the news of the grant.

The CDC continues to monitor the situation closely, emphasizing the importance of early intervention to prevent a larger outbreak. “While the risk to the general public is low, we are taking proactive steps to ensure preparedness,” a CDC spokesperson said.