The US Department of Health and Human Services, under Robert F Kennedy Jr, said that after reviewing the Biden-era deal, it was found that the Moderna project did not meet the scientific standards or safety expectations required for continued federal investment
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US President Donald Trump’s administration has cancelled a deal with Moderna vaccine worth $76 million at a time when cases have started flaring up in the country, affecting poultry.
The former Biden administration had awarded Moderna a $590 million contract 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. That deal now stands null and void, which effectively means that the drug maker does not have the authorisation to create vaccines and sell their shots.
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The US Department of Health and Human Services, under Robert F Kennedy Jr, said that after
reviewing the Biden-era deal
, it was found that the Moderna project did not meet the scientific standards or safety expectations required for continued federal investment.
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It is important to note that RFK Jr is a vaccine sceptic, particularly the mRNA technology that is employed in making Moderna vaccines.
Moderna stocks tumble
The company has been banking on revenue from newer mRNA shots, including its
bird flu
vaccine and experimental COVID-flu combination vaccine, to make up for waning post-pandemic demand for its COVID vaccine.
After the announcement about its bird flu vaccine, shares of Moderna were flat in after-market trading.
As it is, the company was not doing so good business-wise. In the first quarter, Moderna reported a loss of $2.52 per share on $86 million in product sales. While the loss was smaller than expected and an improvement over the $3.07 per-share loss from the same period last year, revenue fell short of expectations. Analysts polled by FactSet had projected sales of $107.3 million.
Bird flu in US
Bird flu has been spreading in the US for quite time, hitting the sale and
consumption of poultry products
and affecting businesses.
As of May 6, the Centres for Disease Control and Prevention (CDC) recorded 70 cases of avian influenza and one death.
In April 2024, the CDC confirmed the first human case of bird flu in a Texas dairy worker who had been exposed to cows suspected of being infected. This case is believed to mark the first known transmission of the H5N1 strain from mammals to humans.
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With inputs from agencies