Trump's Officials To Re-Consider Moderna's $590 Million Bird Flu Vaccine Funding: RFK Jr-Led HHS Slams 'Biden Administration's Failed Oversight'

The Donald Trump administration is contemplating the withdrawal of a $590 million contract previously granted to Moderna Inc. MRNA by the Biden administration. This contract was intended for the production of a bird flu vaccine.

What Happened: The U.S. health officials are currently scrutinizing Moderna’s avian flu vaccine contract as part of a broader review of government expenditure on messenger RNA-based vaccines, Bloomberg reported. The contract, awarded during the final days of the Biden administration, shot up Moderna’s stock within two days of the announcement on January 17.

A spokesperson from Robert F. Kennedy Jr.-led Department of Health and Human Services (HHS) communicated that the review was necessitated by “four years of the Biden administration's failed oversight.” The spokesperson acknowledged the criticality of readiness for the pandemic but also underscored the need for careful examination of vaccine production contracts.

Moderna, having successfully completed an initial trial of the bird flu vaccine last year, was preparing for a large-scale final-stage trial. However, the absence of funding might impede the trial’s progress. The company has been grappling with the need to identify new revenue streams as the sales of its COVID-19 vaccine decline and it maintains significant investments in its pipeline.

The contract was hastily approved amid apprehensions that the Trump administration might be less inclined to finance vaccine manufacturers. Moderna has also been involved in a patent dispute with the National Institutes of Health regarding its vaccine.

SEE ALSO: Trump Reportedly Warns Big Pharma: Move Manufacturing To US Or Face Tariffs

Why It Matters: The reconsideration of funding comes at a time when the Trump administration has committed $1 billion to fight bird flu and bring down the rising egg prices. Notably, the commitment also includes an allocation of $100 million for vaccine research, though the poultry industry is divided on its implications.

This development also coincides with a phase when influential personalities like Bill Gates have warned about the potential for new pandemics and the world’s lack of preparedness. Gates has emphasized that we cannot afford to be caught off guard again, particularly after the devastating impact of COVID-19.

Kennedy, known for his vaccine skepticism and conspiracy theories, has extended his influence globally, undermining health initiatives like vaccination and AIDS prevention, The New York Times reports. Through his nonprofit, Children’s Health Defense, Kennedy has disrupted public health efforts in countries like Uganda and South Africa. He has also questioned the World Health Organization and its programs for fueling global health conspiracies.

Moderna stock has plunged over 65% during the last 12 months as per data from Benzinga Pro.

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