Moderna Cashes Massive $590M Check from Government to Fight Bird Flu Pandemic—Will It Work?

Well, the U.S. is officially backing up the Brinks truck for Moderna to the tune of $590 million in order to fast-track its latest science experiment: an mRNA-based bird flu vaccine. Simply put, the company that became a household name during COVID is back at it, this time trying to tackle H5N1, aka the avian flu, aka the virus that’s been wreaking havoc on poultry farms and occasionally making its way into humans. Because if there’s one thing we’ve learned, it’s that pandemics like to keep us guessing.

(Source: Giphy) 

In short, the money is coming from  HHS’s BARDA division, which let me remind you, has already thrown $176 million at this project since last year. Whereas now, the total tab is creeping up on $766 million—almost as much as the initial $995 million Uncle Sam forked over for Moderna’s COVID vaccine back in 2020. Call it a government-sponsored sequel, but this time, instead of beating the clock on COVID, Moderna’s racing against chicken-killing flu strains before toilet paper becomes another national treasure. 

Additionally, outgoing HHS Secretary Xavier Becerra (clocking out soon but still signing fat checks) called the funding crucial, saying we need to “stay ahead” of unpredictable bird flu variants. Translation: “We’ve seen this movie before, and it doesn’t end well if we don’t prep.” And he’s not wrong. Bird flu has already infected at least 67 people in the U.S., including one fatal case in Louisiana. The CDC says the public health risk is still low, but let’s be honest—that’s how all the bad headlines start.

(Source: NPR) 

For Moderna, they definitely aren’t shy about taking the cash. The company says the funds will bankroll late-stage development, licensure, and expansion of clinical studies for its pandemic influenza vaccine. They’ve already completed an early-stage trial with “positive preliminary data,” though they’re conveniently keeping the details under wraps until they can drop it at a scientific conference.

What’s more is that this comes at a time when Moderna could really use a win. After swimming in cash during the COVID vaccine boom, their revenue has plummeted, and they’ve been cutting costs left, right, and twice on Sunday to avoid eating into their cash pile like I rationed ramen noodles back in college. Manufacturing capacity has also been slashed, but CFO Jamey Mock insists they can still respond to a pandemic if needed.

(Source: Barrons) 

On the other hand, Moderna isn’t the only behemoth taking a crack at the bird flu. Companies like GSK, Sanofi, and Pfizer are also working on mRNA-based flu vaccines. But Moderna seems to have the pole position for now, thanks to the government’s deep pockets. Meanwhile, the feds are hedging their bets—stockpiling old-school flu vaccines from Sanofi and CSL Seqirus while throwing cash at Moderna to modernize the playbook. Why? Because the current process of making flu vaccines with chicken eggs could get messy if the bird flu keeps decimating poultry farms.

In the end, this could become a staple piece for Moderna, if they crack the code. If they don’t  Well, at least they’ve got $590 million to soften the blow. Either way, the government’s not messing around. After watching COVID turn the world upside down, they’re clearly not in the mood to wait and see if bird flu decides to go global.

(Source: Giphy) 

Meaning, here we are. Another round of “let’s throw money at the problem and hope science pulls through.” Moderna’s stock got a nice 4% bump in after-hours trading, because Wall Street knows the real pandemic play is government contracts (duh). 

In the meantime though, let’s just hope this is one of those investments we never have to cash in on. For now, keep your eyes on this story, and place your bets accordingly. As always stay safe and stay frosty, friends! Until next time… 

P.S. Curious to see which insiders and congress members were/are loading up on Moderna? We’ve got the receipts inside of Stocks.News premium. Click here to get the zesty deets before our civil servants once again show everyone they are the best damn traders on the planet. 

Stocks.News holds positions in Moderna as mentioned in the article.