HHS Terminates Moderna's $590M Bird Flu Vaccine Contract, Raising Questions About mRNA Technology's Future

The U.S. Department of Health and Human Services (HHS) has terminated a $590 million contract with Moderna for the development of an mRNA-based pandemic bird flu vaccine, signaling a significant shift in the government's approach to pandemic preparedness and casting doubt on the future of mRNA technology in vaccine development.

Contract Termination and Its Implications

The HHS decision to cancel the contract, which was awarded in January 2025 as an expansion of a previous $176 million agreement, has left Moderna scrambling to find alternative funding for late-stage development and manufacturing of its H5N1 avian influenza vaccine candidate, mRNA-1018. The termination comes just months after the inauguration of a new administration, led by HHS chief Robert F. Kennedy Jr., known for his skepticism towards mRNA vaccines.

Andrew Nixon, the HHS's director of communications, stated that after a "rigorous review," the agency concluded that "continued investment in Moderna's H5N1 mRNA vaccine was not scientifically or ethically justifiable." This decision aligns with the new administration's stance on mRNA technology, which it considers "under-tested."

Moderna's Clinical Data and Future Plans

Despite the setback, Moderna has released promising interim results from its phase 1/2 trial of mRNA-1018. The study, involving 300 adults, showed that 97.8% of participants had antibody titers above the threshold of protection three weeks after receiving the second dose, compared to just 2.1% at baseline. The vaccine was reported to be generally well-tolerated, with most adverse reactions classified as mild.

Stéphane Bancel, Moderna's CEO, expressed disappointment in the funding loss but remained optimistic about the vaccine's potential. "While the termination of funding from HHS adds uncertainty, we are pleased by the robust immune response and safety profile observed in this interim analysis," Bancel stated. The company is now exploring alternatives for late-phase development, consistent with its "strategic commitment to pandemic preparedness."

Shifting Landscape of Pandemic Preparedness

The HHS's decision to terminate Moderna's contract comes amid a broader reevaluation of the U.S. government's approach to pandemic preparedness. The agency has redirected $500 million in federal funding towards a new initiative called Generation Gold Standard, which aims to develop universal shots against "pandemic-prone" viruses using alternative technologies.

This shift in strategy occurs against the backdrop of an ongoing outbreak of avian influenza in animals, with the Centers for Disease Control and Prevention reporting 70 human cases of bird flu in the U.S. and one death. The cancellation of Moderna's contract raises questions about the government's preparedness for potential future pandemics and its stance on mRNA technology, which played a crucial role in the rapid development of COVID-19 vaccines.