- U.S. health officials are considering pulling funding on a $590 million contract awarded to Moderna to develop a bird flu vaccine for humans. The funding agreement for the program came during the final days of the Biden administration.
- According to multiple reports, the U.S. Department of Health and Human Services has begun reviewing the contract.
- The move is part of the Trump administration’s examination of spending on messenger RNA-based technology.
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U.S. health officials are considering pulling the plug on a $590 million contract awarded to Moderna to develop a bird flu vaccine for humans. The funding agreement for the program came during the final days of the Biden administration.
Why could the contract be in jeopardy?
According to multiple reports, the U.S. Department of Health and Human Services has begun reviewing the contract.
The move is part of the Trump administration’s examination of spending on messenger RNA technology. That’s the same kind of technology used in COVID-19 shots.
Has there been fallout from the news?
Shares of Moderna fell as much as 5% on Thursday, Feb. 27, after the review was revealed.
A Bloomberg intelligence analyst said the potential termination of the contract signals increased resistance from the White House to go “forward with vaccines based on historical plans, particularly mRNA shots.”
The mRNA technology allows vaccines to be manufactured more quickly than traditional ones.
How does it play into the bigger picture?
The potential pullback comes amid a record-breaking bird flu outbreak impacting dozens of cattle herds and poultry flocks across the United States, resulting in a dramatic increase in egg prices.
The Trump administration is also working to tackle the soaring costs of eggs.
What is the Trump administration doing about egg prices?
As Straight Arrow News recently reported, Agriculture Secretary Brooke Rollins released a five-point plan on Wednesday, Feb. 26, to lower the price of eggs and combat the spread of the avian flu.
The plan, however, focuses mostly on the impact at the breakfast table. The plan banks on the fact that H5N1 is still considered a very low risk to humans, according to the Centers for Disease Control and Prevention.
Most of the 70 human cases confirmed by the agency have been farmworkers.
The majority of the U.S. Department of Agriculture’s $1 billion in funding is going toward biosecurity measures at farms and financial assistance to farmers.
The USDA said it will pay up to 75% of the cost to fix biosecurity hazards at barns.
Egg prices have reportedly increased nearly 160% since January 2021, and the USDA estimates egg prices will rise by another 41% in 2025.