Moderna Stock Jumps On $590M US Award For Bird Flu Vaccine Development, But Retail Doubts Longevity Under Trump

In 2023, Moderna initiated a Phase 1/2 study to assess the safety and immunogenicity of its investigational bird flu vaccine, mRNA-1018, in healthy adults aged 18 and older.

Shares of Moderna Inc. rose over 5% on Tuesday morning, reaching levels last seen more than a week ago, following news of a $590 million award from the U.S. Health and Human Services Department to accelerate its bird flu vaccine development.

According to Moderna, the funding announced on Sunday — the last working day of the Biden administration — will support late-stage development and licensure of its mRNA-based vaccines for pandemic influenza.

The company added that it will also enable clinical studies targeting up to five additional subtypes of pandemic influenza.

In 2023, Moderna initiated a Phase 1/2 study to assess the safety and immunogenicity of its investigational bird flu vaccine, mRNA-1018, in healthy adults aged 18 and older.

Positive preliminary results have prompted the company to prepare for Phase 3 trials, with detailed Phase 1/2 data expected to be presented at an upcoming scientific meeting.

Despite the positive news, sentiment for Moderna on Stocktwits remained in the 'bearish' zone amid heightened message volume.

Many retail investors are skeptical of the federal award's long-term impact, citing the Trump administration's appointment of Robert F. Kennedy Jr. — a known vaccine skeptic — as head of health agencies.

Kennedy, who formally requested the FDA revoke COVID-19 vaccine authorizations during the pandemic in 2021, has sparked concerns among Moderna investors.

Although Kennedy and his allies insist he is not anti-vaccine, his upcoming Senate confirmation hearings are expected to draw scrutiny over his past statements.

Adding to the headwinds, Moderna recently lowered its 2025 sales guidance by $1 billion, citing a weak outlook for its COVID-19 vaccine business.

However, investor interest in Moderna's H5N1 bird flu vaccine candidate has been reignited amid growing cases of bird flu in the U.S., predominantly among farmworkers, with a recent fatality in Louisiana adding to fears.

Moderna shares are down 14% year-to-date.

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