Big blow to Moderna vaccine projects as Trump cancels over $700 million funding

Time of India

29-05-2025

The Trump administration has slashed $766 million allocated in funding to Moderna Inc., an American biotech and pharmaceutical company responsible for developing vaccines. Moderna was tasked to make vaccines against potential pandemic influenza viruses, as well as the H5N1 bird flu. This comes at a time when a new Covid strain has sparked concerns in the US.
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Trump cancels contract Moderna's award
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The Trump administration cancelled more than $700 million award to Moderna to develop an mRNA vaccine for bird flu in humans, the company announced Wednesday. It has also cancelled the right to purchase shots, according to the drugmaker.In January, Moderna was awarded $590 million by the Biden administration to advance the development of its bird flu vaccine, and support the expansion of clinical studies for up to five additional subtypes of pandemic influenza. This was in addition to the $176 million granted last year by the US Department of Health and Human Services for the advanced development and testing of a pre-pandemic mRNA vaccine targeting H5N1 avian influenza, Moderna announced plans to consider alternative options for the vaccine's late-stage development and production. But the company said it would explore alternatives for further developing and manufacturing the shot.Health secretary Robert F. Kennedy has expressed his concerns regarding the company's vaccines despite evidence that vaccines developed by Moderna are safe and have saved millions of lives before. '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," said the company in a statement as reported by AP. Using the same technology used to develop and roll out vaccines during the Covid-19 pandemic, Moderna has developed a new vaccine called mRNA-1018.Moderna reported positive early stage data on the mRNA vaccine, saying clinical testing in roughly 300 adults was found to be generally well-tolerated. Participants achieved 98% immunity within three weeks of the second dose of the vaccine, the company said."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 of the Phase 1/2 study of our H5 avian flu vaccine and we will explore alternative paths forward for the program," Moderna CEO Stéphane Bancel said in a statement. "These clinical data in pandemic influenza underscore the critical role mRNA technology has played as a countermeasure to emerging health threats."Meanwhile, a new and highly contagious Covid-19 variant, labeled NB.1.81, has emerged in the United States. First detected in late March and early April among international travelers, the variant has since been reported in several states, including New York, Ohio, California, Rhode Island, Hawaii, Washington, and Virginia.In a related concern, last year saw the H5N1 bird flu virus jump from wild birds to cattle, resulting in infections among hundreds of animals across multiple states. Seventy people fell ill with the flu, and one fatality was reported. Scientists continue to warn that ongoing mutations or evolution of the virus could increase its severity and potentially trigger a pandemic.