US Cancels Bird Flu Vaccine Deal

The U.S. Department of Health and Human Services (HHS) said it is canceling a $766 million contract with Moderna to develop an mRNA-based vaccine targeting flu strains with pandemic potential, including the H5N1 bird flu virus currently circulating in some U.S. dairy herds.

The agency cited concerns over the safety profile of the mRNA technology and a desire to shift toward vaccine platforms with “better-established safety profiles and transparent data practices.”

HHS Communications Director Andrew Nixon said the decision followed a "rigorous review" and was “not scientifically or ethically justifiable” to continue.

The cancellation comes as the H5N1 bird flu virus continues to spread among livestock, with the Centers for Disease Control and Prevention reporting infections in 41 dairy herds and 24 poultry farms.

Seventy human cases have been identified globally, including one fatality in the U.S., though the virus has not yet shown the ability to transmit easily between humans.

Moderna had previously shared encouraging interim results from a Phase 1/2 trial involving 300 healthy adults, reporting a robust immune response.

The company expressed disappointment at the funding termination but said it will consider alternative paths for the vaccine’s development.

Dr. Ashish Jha, former White House COVID-19 response coordinator, called the decision “absurd,” warning that bird flu remains a significant threat.

“If the virus evolves to spread person-to-person, we could see serious consequences,” Jha said.

Michael Osterholm, a leading infectious disease expert at the University of Minnesota, echoed concerns: “This decision will make our country far less prepared to respond to the next influenza pandemic.”

Experts also warned that alternative flu vaccine technologies are generally slower to produce and may rely on egg-based methods that could be hampered during a pandemic.

“We shouldn’t put all our eggs in one basket,” said Jennifer Nuzzo, director of Brown University’s Pandemic Center.

Despite the cancellation, HHS said it remains committed to supporting evidence-based, ethical and accountable pandemic preparedness efforts.