U.S. health officials have started a thorough examination of a substantial contract awarded to Moderna Inc. by the Biden administration in its final days. This $590 million agreement is aimed at producing a bird flu vaccine using mRNA technology, the same platform used for their Covid-19 vaccine, which significantly contributed to their market success.
The urgency of this contract was underscored by the need to counteract a record-setting bird flu outbreak affecting numerous livestock and poultry farms across the nation. The outbreak has resulted in skyrocketing egg prices, raising alarms about potential human transmission and the associated health risks, despite few cases among people so far.
Critics have pointed to the Biden administration’s oversight of vaccine production agreements, prompting a reassessment under the new administration. A spokesperson for the Health and Human Services (HHS) emphasized that ensuring pandemic preparedness remains vital, yet existing agreements require careful scrutiny due to past management failures.
As part of this contract review, Moderna, which has seen a decline in Covid-19 vaccine sales, might face challenges in conducting a large-scale final trial for its bird flu vaccine without the anticipated funding. The company had shown promise with early trial successes, but now stands at a crossroads amidst financial constraints.
Messenger RNA technology, utilized by companies like Moderna and Pfizer, has advantages in speed and adaptability, allowing quicker vaccine production. However, this advantage comes at a steep financial cost, which has become a focal point in the government’s reassessment.
In parallel, the government has directed Vaxart Inc. to halt most activities under a separate federal contract for developing an oral Covid-19 vaccine, a move reflecting broader budgetary and strategic shifts at a federal level.
Moderna has been under pressure to diversify its sources of revenue beyond the waning Covid-19 vaccine sales. The expedited approval of the bird flu vaccine contract previously aimed to secure continuity in vaccine innovation ahead of potential shifts in funding policies under the Trump administration.
The recent appointment of Robert F. Kennedy Jr. as head of HHS, known for his vocal opposition to certain vaccines, adds another layer of complexity to the situation. Kennedy’s past comments and the current administrative transitions have contributed to heightened scrutiny and adjustments within public health strategies.
Additionally, Moderna’s past involvement in a patent dispute with the National Institutes of Health over the Covid-19 vaccine highlights ongoing challenges related to intellectual property and credit allocation among collaborating entities.
The government’s review of the Moderna bird flu vaccine contract underscores its commitment to fiscal responsibility and strategic vaccine development amid evolving public health needs and financial scrutiny.
