Moderna, Novavax Shares Are Sliding Wednesday: What's Going On?

Vaccine makers Moderna Inc MRNA and Novavax Inc NVAX are facing selling pressure on Wednesday following reports suggesting the Trump administration will end support for Gavi.

What To Know: According to a New York Times report, The Trump administration plans to cease financial support for vaccine alliance Gavi, which helps buy vaccines for children in developing countries.

The Trump administration is also planning to “significantly scale back” support for efforts to combat malaria, the report states, citing a document from the United States Agency for International Development.

Meanwhile, the administration will continue to provide some grants for H.I.V. and tuberculosis medications, as well as food aid for countries in civil wars or facing natural disasters. In total, the Trump administration has reportedly decided to end 5,341 previously granted awards and continue with 898 of them.

See Also: Moderna’s Options: A Look at What the Big Money is Thinking

Funding for the United Nations Food and Agriculture Organization is also being terminated. The report indicates that the organization conducts surveillance for diseases that can be transmitted from animals to humans, including the bird flu.

Moderna was awarded $590 million by the U.S. Department of Health and Human Services (HHS) in January to continue developing a vaccine to protect against bird flu. The Trump administration was reportedly reconsidering that funding as of last month.

MRNA, NVAX Price Action: At the time of publication, Moderna shares were down 5.70% at $31.91 and Novavax shares were down 3.37% at $7.30, according to Benzinga Pro.

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