U.S. Awards Moderna $176-M To Produce Bird Flu Vaccine

The US government has awarded $176 million to Moderna to advance the development of its bird flu vaccine, the company said, as concerns rise over a multi-state outbreak of the H5N1 virus in dairy cows and infections of three dairy workers since March, Julie Steenhuysen reported for Reuters.

The funds from the US Biomedical Advanced Research and Development Authority will be used to complete late-stage development and testing of a pre-pandemic mRNA-based vaccine against H5N1 avian influenza. I Photo: Moderna

Shares of the Cambridge, Massachusetts-based company rose more than 2% to $118.32 in early trade.

The funds from the US Biomedical Advanced Research and Development Authority will be used to complete late-stage development and testing of a pre-pandemic mRNA-based vaccine against H5N1 avian influenza, the company said in a statement.

The agreement also includes additional options to prepare and accelerate a response to future public health threats, the company said.

In March, US officials reported the first outbreak of the H5N1 virus in dairy cattle, which has since infected more than 130 herds in 12 states.

Scientists are concerned that exposure to the virus in poultry and dairy operations could increase the risk that the virus will mutate and gain the ability to spread easily among people, potentially touching off a pandemic.