logo
Robert F. Kennedy Jr. cancels $500 million in mRNA vaccine projects

Robert F. Kennedy Jr. cancels $500 million in mRNA vaccine projects

Business Upturn2 days ago
By Bhavya Rai Published on August 6, 2025, 14:39 EDT
Health Secretary Robert F. Kennedy Jr. has announced that the government will cancel $500 million worth of vaccine development projects. These projects were based on mRNA technology, the same kind used in COVID-19 vaccines by Pfizer and Moderna. Kennedy said this decision came after a full review of the science and discussions with top health experts.
Kennedy explained that the Department of Health and Human Services believes mRNA vaccines bring more risks than benefits, especially for diseases like COVID-19 and the flu. He shared the news in a video on the social media platform X. Kennedy has long been critical of vaccines, so this move was not a surprise to many.
The cancellation affects 22 different projects. Major pharmaceutical companies like Pfizer, Sanofi, and CSL Seqirus will lose funding. Some universities, including Emory and Tiba Biotech, will also have their projects stopped. Only a few projects in their final stages will be allowed to finish.
Many health experts are worried about this decision. Rick Bright, a former government vaccine expert, said it's a big mistake. He believes cutting mRNA research makes the country less prepared for future pandemics. He also said the decision could harm national security.
The government also said that BARDA, the agency that supports vaccine research, will stop funding any new mRNA projects. Instead, they will invest in other vaccine types, such as whole-virus vaccines or newer methods. Some mRNA work in other areas of medicine may still continue.
This is a major change in how the U.S. handles vaccine research. Many people are now wondering what this means for the future of pandemic response and public health.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump admin directs federal agencies to delete employee COVID vaccination records: ‘Must be expunged'
Trump admin directs federal agencies to delete employee COVID vaccination records: ‘Must be expunged'

New York Post

time2 hours ago

  • New York Post

Trump admin directs federal agencies to delete employee COVID vaccination records: ‘Must be expunged'

The Trump administration on Friday ordered all federal agencies to eliminate any records related to workers' COVID-19 vaccination status, noncompliance with pandemic-era mandates or requests for vaccine exemptions. The rollback of vaccine record retention requirements was announced by the Office of Personnel Management (OPM) in a memo to all federal department and agency heads. OPM explained that the move is in response to recent litigation and is part of the Trump administrationʼs broader effort to reverse 'harmful pandemic-era policies' imposed by former President Joe Biden. 5 President Donald Trump attends a signing ceremony in the State Dining Room of the White House on Aug. 8, 2025. NATHAN HOWARD/POOL/EPA/Shutterstock 'Things got out of hand during the pandemic, and federal workers were fired, punished, or sidelined for simply making a personal medical decision,' OPM Director Scott Kupor said in a statement. 'That should never have happened.' 'Thanks to President Trumpʼs leadership, weʼre making sure the excesses of that era do not have lingering effects on federal workers,' Kupor added. Under the directive, effective immediately, agencies are barred from using an employee's vaccine history in any employment-related decision, including hiring, promotion, discipline, or termination. Within 90 days, vaccine-related information 'must be expunged' from both physical and electronic personnel files of all federal workers. 5 Scott Kupor, Director of the Office of Personnel Management, listens during a hearing of the Senate committee on April 3, 2025. AP 5 Dr. Anthony Fauci receives his first dose of the COVID-19 vaccine at the National Institutes of Health in Bethesda, Maryland on Dec. 22, 2020. AP Employees can opt out within those 90 days if they wish to keep their COVID vaccine history on file. Agencies must certify compliance with Kupor's order by Sept. 8. In September 2021, Biden signed an executive order forcing all federal workers to take the COVID-19 vaccine as a condition of employment. 5 House Speaker Nancy Pelosi holds up her COVID-19 vaccination card in the Capitol on Dec. 18, 2020. UPI 5 Vice President-elect Kamala Harris receives a Moderna COVID-19 vaccine at the United Medical Center in Washington, DC, on Dec. 29, 2020. Getty Images A federal judge issued a nationwide injunction blocking the Biden vaccine mandate in January 2022 – by which point the administration said nearly 98% of covered employees had been vaccinated. In April 2022, a three-judge panel on the US Court of Appeals for the Fifth Circuit reversed the injunction, but a year later, the full fifth circuit struck down the mandate. Biden rescinded the mandate in May of 2023 — several months after he declared that the pandemic 'is over' in a September 2022 '60 Minutes' interview.

Sector Spotlight: Trump administration seeks hometown discount from Big Pharma
Sector Spotlight: Trump administration seeks hometown discount from Big Pharma

Business Insider

time6 hours ago

  • Business Insider

Sector Spotlight: Trump administration seeks hometown discount from Big Pharma

Welcome to the latest 'Sector Spotlight,' where The Fly looks at a new industry every week and highlights its happenings. This edition focuses on the pharmaceutical sector following a busy week of earnings and political news. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. PHARMACEUTICAL NEWS: The Trump administration has been talking to drugmakers about ways to raise prices of medicines in Europe and elsewhere in order to cut drug costs in the United States, Reuters' Patrick Wingrove and Maggie Fick reported, citing a White House official and three pharmaceutical industry sources. U.S. officials told drug companies it would support their international negotiations with governments if they adopt 'most favored nation' pricing under which U.S. drug costs match the lower rates offered to other wealthy countries. President Donald Trump said while being interviewed on CNBC earlier this week that separate tariff announcements are coming soon on semiconductor chips and pharmaceuticals. GSK (GSK) announced that, in connection with the mRNA patent settlement reached between CureVac (CVAC) and BioNTech (BNTX) on, the company will receive an upfront settlement of $370M. GSK will also receive a 1% royalty in respect of US sales of influenza, COVID-19 and related combination mRNA vaccine products by BioNTech and Pfizer (PFE) from the beginning of 2025. These payments are due to GSK in accordance with the terms of its existing license agreement with CureVac. Of the upfront settlement amount, $320m will be in cash. The remainder is attributed to the value of an amendment to GSK's existing agreement with CureVac, which includes a significant reduction in royalties to be paid by GSK on our potential future mRNA influenza, COVID-19 and influenza/COVID-19 combination products. If the pending acquisition of CureVac by BioNTech successfully closes, the mRNA patent litigation between CureVac and BioNTech outside of the US will also be settled. GSK would then be entitled to an additional $130 million in cash and 1% royalty payments in respect of future sales outside of the US by BioNTech and Pfizer. Sales of Novo Nordisk's (NVO) Wegovy and Eli Lilly's (LLY) Mounjaro doubled in India in July compared to June, Rishika Sadam and Kashish Tandon of Reuters noted, citing research firm Pharmarack. Demand for anti-obesity drugs has been on an upswing in the country. Novartis (NVS) has made a takeover offer for Avidity Biosciences (RNA), which has a market value of $4.3B, The Financial Times' Oliver Barnes, James Fontanella-Khan and Hannah Kuchler wrote. Avidity, which has three medicines in clinical trials that treat different forms of muscular dystrophy, is working with advisers to assess its options, people familiar with the matter say. The U.S. Department of Health and Human Services announced the beginning of a coordinated wind-down of its mRNA vaccine development activities under the Biomedical Advanced Research and Development Authority, including the cancellation and de-scoping of various contracts and solicitations. The decision follows a comprehensive review of mRNA-related investments initiated during the COVID-19 public health emergency. 'We reviewed the science, listened to the experts, and acted,' said HHS Secretary Robert F. Kennedy, Jr. 'BARDA is terminating 22 mRNA vaccine development investments because the data show these vaccines fail to protect effectively against upper respiratory infections like COVID and flu. We're shifting that funding toward safer, broader vaccine platforms that remain effective even as viruses mutate.' The wind-down affects a range of programs including: Cancellation of BARDA's award to Moderna (MRNA) /UTMB for an mRNA-based H5N1 vaccine; Termination of contracts with Emory University and Tiba Biotech; De-scoping of mRNA-related work in existing contracts with Luminary Labs, ModeX, and Seqirus; Rejection or cancellation of multiple pre-award solicitations, including proposals from Pfizer , Sanofi Pasteur (SNY), CSL Seqirus, Gritstone, and others, as part of BARDA's Rapid Response Partnership Vehicle and VITAL Hub, and; Restructuring of collaborations with DoD-JPEO, affecting nucleic acid-based vaccine projects with AAHI, AstraZeneca (AZN), and HDT Bio. Bristol Myers (BMY) announced that the FDA has accepted the supplemental biologics license application for Breyanzi as a potential treatment for adult patients with relapsed or refractory marginal zone lymphoma who have received at least two prior lines of systemic therapy. EARNINGS RECAP: Eli Lilly's second quarter results beat expectations and the company raised its full-year outlook as well. However, shares of the company were down 7% on Thursday morning after the company reported data from a late-stage trial of its under-development obesity pill. 'Lilly delivered another quarter of strong performance, achieving 38% year-over-year revenue growth driven by robust sales of Zepbound and Mounjaro and sustained momentum across our key medicines,' said David Ricks, Lilly chair and CEO. 'Our pipeline continued to advance, highlighted by positive study results in oncology and cardiometabolic health-including Mounjaro's demonstrated cardio-protective effects in patients with type 2 diabetes and heart disease and strong data for our oral incretin, orforglipron, in obesity. We also expanded manufacturing capacity to meet increasing demand and invested in key R&D initiatives to support our long-term growth.' Leerink downgraded Eli Lilly to Market Perform from Outperform with a price target of $715, down from $944. Following 'disappointing' initial results for orforglipron, the company's oral GLP-1, the firm is lowering its long-term projections and notes that its 'investment thesis has changed' as it no longer expects upward pressure on long-term consensus expectations. The firm also noted that Lilly's major competitor Novo Nordisk is struggling and may need to continue to use price to compete in its duopoly while the firm expects growing competition from various competitors starting late decade. Conversely, JPMorgan views the post-earnings selloff in shares of Eli Lilly as providing a 'compelling' entry point. The Q2 report came in well ahead of consensus estimates and Lilly is raised guidance, which should dispel some weight loss market concerns, the analyst tells investors. However, the firm says the bigger focus was on orforglipron's Phase 3 obesity data where weight loss came in slightly below expectations. JPMorgan does not see 1-2 percentage points lower weight loss as meaningfully changing the use case for orforglipron. It keeps an Overweight rating on Lilly shares with a $1,100 price target. Pfizer also experienced a beat and raise quarter in Q2. Although, the company did note that its FY25 guidance does not anticipate any share repurchases. On the company's Q2 earning call, Pfizer noted that the company's guidance 'absorbs the impact of the currently imposed tariffs from China, Canada and Mexico as well as potential price changes this year based on the letter received on July 31 from President Trump.' Later in the call, Pfizer CEO Albert Bourla said the company is 'in very active discussions' at 'the highest levels of this government.' Bourla added: 'I discussed myself with the president after he sent the letter to me and all the others. We discussed a lot with the Secretary Kennedy, we discussed a lot with Doctor Post who is responsible for implementing a lot of these things. And I would say only that these discussions are extremely productive. I think we understand where the president comes from, and we are engaging in a productive way to find a solution. But because we are in active discussions, it's inappropriate for me to start providing more details because I don't want to say things while discussing with them. So I understand that many others may have questions about that, and I'm not sure I can give more information than what I just told you. That we had a letter that says a base of what the president wants. The letter asks a lot from us. But we are engaged in productive discussions with them.' Following the report, Citi analyst Geoff Meacham raised the firm's price target on Pfizer to $26 from $25 and reiterated a Neutral rating on the shares. The company reported strong Q2 results, but policy headwinds warrant a continued cautious stance, the analyst told investors.

Moderna Is Cutting 10,000 Jobs as Its Business Erodes. How Should You Play MRNA Stock Here?
Moderna Is Cutting 10,000 Jobs as Its Business Erodes. How Should You Play MRNA Stock Here?

Yahoo

time6 hours ago

  • Yahoo

Moderna Is Cutting 10,000 Jobs as Its Business Erodes. How Should You Play MRNA Stock Here?

Moderna (MRNA) skyrocketed to fame during the pandemic, delivering one of the first mRNA-based Covid-19 vaccines and quickly becoming a Wall Street darling. Its vaccine shot brought in billions, positioning the biotech firm as a symbol of innovation and speed in a global crisis. But the post-Covid world hasn't been as kind. With vaccination rates falling and Spikevax sales drying up, revenues have tumbled. The gold rush moment is clearly over. Now, in a bid to stay lean, Moderna is cutting roughly 10% of its workforce as part of a broader plan to reduce annual operating expenses by $1.5 billion through 2027. The company tried to dodge layoffs by tightening R&D budgets, dialing down manufacturing, and renegotiating supplier deals. But with the market shifting and respiratory vaccine sales stalling, CEO Stéphane Bancel says it's time to realign the business with a leaner game plan. More News from Barchart Supermicro's Earnings Selloff Explained: Should You Buy SMCI Stock Now? Amazon's $36M Bet on Quantum Computing: What Investors Need to Know AMD Stock Slips After Q2 Earnings, But Here's Why It's a Buying Opportunity Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! The company is betting big on a pipeline loaded with promise — next-gen mRNA shots in oncology, rare diseases, and latent viruses. But with MRNA stock down more than 90% from its pandemic highs and policy headwinds brewing, is this a comeback play or a value trap? How should investors approach the biotech stock now? About Moderna Stock Based in Cambridge, Massachusetts and founded in 2010, Moderna began as a moonshot on mRNA tech, chasing cures for infectious diseases, rare disorders, cancer, and more. Backed by major players like AstraZeneca (AZN) and the Gates Foundation, it built a powerful platform with world-changing potential. Its market capitalization currently stands at $10.4 billion. When the pandemic hit, Moderna went from a clinical-stage underdog to a global hero with a Covid-19 vaccine that changed everything. But as the world moved on, demand faded, and so did the company's momentum. After peaking just shy of $500 in 2021, MRNA stock has crashed 94% from that level. In 2025 alone, shares are down 37%, including a 12% dip in just the past month. A lukewarm second-quarter earnings report last week triggered a 6.6% dip in just one session. In terms of valuation, MRNA stock is trading at 3.3 times sales, which is lower than its own five-year average multiple. Moderna's Mixed Q2 Earnings Report On Aug. 1, Moderna dropped its Q2 earnings report, showing signs of tighter control amid a post-Covid reset. The company posted a loss of $2.13 per share, still in the red, but better than both Wall Street's projections and last year's results. Revenue came in at $142 million, down 41% year-over-year (YOY) but still ahead of estimates. The decline was due to shrinking demand for its Covid-19 vaccine, Spikevax, which made up nearly all of the $114 million in product sales. The real story here isn't just about numbers but about a pivot. With the pandemic in the rearview, Spikevax is settling into its new role as a seasonal product, and mResvia — the company's newly launched RSV vaccine — barely moved the needle this quarter. Add to that a sharp 51% drop in collaboration and licensing revenue, and it is clear the biotech is feeling the squeeze. So, Moderna is tightening its belt, and fast. Operating costs are being hacked down as part of a major restructuring. SG&A expenses fell 14%, and R&D was slashed 43% to $700 million, largely due to scaled-back respiratory programs and slower clinical activity. But perhaps the most visible shift is in the workforce. As part of the company's cost-streamlining drive, it is trimming nearly 10% of its global staff. It's a tough call, but a necessary one to keep the long-term mission on track. Looking forward, Moderna revised its full-year revenue guidance to between $1.5 billion and $2.2 billion, down $300 million from its earlier high-end forecast. The reason is that a delivery delay of U.K. vaccine orders has now pushed into early 2026. Most of the 2025 revenue is expected to roll in during the second half, with Q3 pulling in about 40% to 50% of that haul. Meanwhile, R&D guidance has also been trimmed to $3.6 billion and $3.8 billion, aligning with workforce reductions and lower clinical spend. Despite the turbulence, the company is set to close 2025 with approximately $6 billion in cash and investments — a solid cushion for navigating whatever comes next. Analysts tracking the biotech company anticipate Moderna's losses to deepen by 11% YOY to around -$9.82 per share in fiscal 2025, then narrow by 27% annually to -$7.21 per share in fiscal 2026. What Do Analysts Expect for Moderna Stock? After Moderna's Q2 earnings release, Wall Street's confidence took a softer tone, reflected clearly in the updated price targets. Bank of America nudged its target down to $24 from $25, holding firm on its 'Underperform' rating. Analyst Tim Anderson is not sold on Moderna's long-term growth story, pointing out that the company's near- and mid-term outlook still leans heavily on Covid vaccine sales, which are notoriously hard to predict in this post-pandemic world. Bank of America has been skeptical for a while. The firm reinstated coverage back in December with that same 'Underperform' call, flagging doubts about the company's other programs like RSV and CMV. Despite Moderna's push to diversify, the brokerage firm is not yet convinced there's enough there to support sustainable growth. Barclays also reined things in, trimming its price target from $40 to $31 while maintaining an 'Equal Weight' rating. Analyst Gena Wang said the downward shift stems largely from Moderna pushing some U.K. vaccine revenue into early 2026. Still, Wang believes further cost-cutting should help Moderna stay on track with its goal of breaking even by 2028. Moderna's reinvention pitch is loud, but the Street is staying cautious. Among the 26 analysts covering MRNA stock, the consensus rating is a 'Hold.' That's based on three analysts recommending a 'Strong Buy,' 19 advising a 'Hold,' one giving a 'Moderate Sell,' and the remaining three suggesting a 'Strong Sell.' The mean price target of $41.90 for MRNA stock suggests more than 57% upside potential from current levels. The Street-high target of $198 implies that the stock could rally as much as 644%. On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store