In response to the growing threat of the H5N1 bird flu virus, the U.S. government has awarded a $176 million contract to Moderna Inc.
What Happened: Moderna revealed on Tuesday that it had received significant funding from the U.S. Biomedical Advanced Research and Development Authority, Reuters reported. The funds will be utilized to finalize the late-stage development and testing of a pre-pandemic mRNA-based vaccine against H5N1 avian influenza.
The contract also includes additional measures to prepare and expedite a response to future public health threats. This action follows the first reported outbreak of the H5N1 virus in dairy cattle in March, which has since spread to over 130 herds across 12 states.
Scientists are concerned that exposure to the virus in poultry and dairy operations could increase the risk of the virus mutating and spreading easily among humans, potentially leading to a pandemic.
Moderna began a safety and immunogenicity study of its bird flu vaccine, mRNA-1018, in healthy adults aged 18 and older last year. The study results, expected later this year, will guide the late-stage development plans.
Moderna's vaccine employs mRNA technology, similar to its COVID-19 vaccine. "mRNA vaccine technology offers advantages in efficacy, speed of development and production, scalability, and reliability in addressing infectious disease outbreaks, as demonstrated during the COVID-19 pandemic," said Moderna CEO Stephane Bancel.
Why It Matters: The threat of bird flu has been escalating globally. In June, a 59-year-old man in Mexico became the first human fatality from a new strain of bird flu, H5N2. This strain is different from H5N1, which has been diversifying genetically since 2005.
Furthermore, Finland is planning to become the first country to offer vaccines to select groups at risk of exposure to avian influenza. The vaccine campaign will be limited, with doses available to groups including poultry farmers, veterinarians, and scientists studying the virus.
Price Action: Moderna was trading 0.28% higher on Tuesday's premarket at the time of writing, according to Benzinga Pro.
