Moderna Inc. (MRNA) has suffered a major setback after the Trump administration abruptly cancelled a $766 million contract intended to support the development of a bird flu vaccine. The funding, which was aimed at combating future pandemic influenza threats like H5N1, was revoked as part of a broader reassessment of government pandemic preparedness efforts.
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Big Blow to Moderna
According to Moderna, the U.S. Department of Health and Human Services (HHS) has withdrawn funding that was previously granted in July 2024 and January to support the development and procurement of its experimental bird flu vaccine. This included $590 million allocated by the Biden administration and an additional $176 million from HHS to help finalize late-stage development and testing of an mRNA-based pre-pandemic vaccine targeting the H5N1 avian influenza strain.
The cancellation drew concern from public health experts. Amesh Adalja, senior scholar at the Johns Hopkins Center for Health Security stated “The cancellation means that the government is discarding what could be one of the most effective and rapid tools to combat an avian influenza outbreak.”
Moderna Unveils Positive Interim Data
The funding cut announcement coincides as the company revealed encouraging interim results from a Phase 1/2 clinical trial of its investigational H5 avian influenza vaccine, mRNA-1018. Despite the setback in funding, the early data signals potential progress in Moderna’s flu vaccine pipeline.
Overall, the cancellation is a significant setback for Moderna, potentially delaying its bird flu vaccine development and hurting investor confidence. The move may also impact the company’s near-term revenue prospects tied to pandemic preparedness initiatives.
What Is the Prediction for Moderna Stock?
On TipRanks, MRNA stock has a consensus Hold rating among 20 Wall Street analysts. That rating is based on four Buys, 13 Holds, and three Sells assigned in the last three months. The average MRNA price target of $49.36 implies an 89.5% upside from current levels.
Year-to-date, MRNA stock has declined by over 37%.
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