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

synopsis

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.

MRNA sentiment and message volume Jan 21 as of 12:30 pm ET | source: Stocktwits

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.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<