Moderna (MRNA) saw its shares rise by 2.4% in premarket trading on Thursday, following news that the U.S. government is on the verge of finalizing a deal to fund a late-stage trial of the company’s mRNA-based bird-flu vaccine. This development signals a significant milestone for Moderna, which continues to leverage its mRNA technology to address global public health challenges.
The funding, which will come from the Biomedical Advanced Research and Development Authority (BARDA), a division within the U.S. Department of Health and Human Services (HHS), is expected to be in the tens of millions of dollars. The agreement reportedly includes a commitment to purchase doses of the vaccine if the trial proves successful, according to the Financial Times.
Moderna confirmed these developments, stating, “We are in discussions with the U.S. government on advancing our pandemic flu candidate, mRNA-1018.” The company has completed dosing in an earlier-stage trial of the vaccine and anticipates data availability soon. Moderna emphasized its dedication to utilizing its mRNA platform to tackle public health issues.
Requests for comments from the HHS were not immediately answered. However, a spokesperson from the department’s Administration for Strategic Preparedness and Response disclosed last week that the agency is looking into adding an mRNA platform for influenza vaccines. This could be a significant addition to its national pre-pandemic flu vaccine stockpile program.
This vaccine stockpile program already includes antigens that are well-matched to the current H5N1 bird flu strain. The spokesperson further noted that, starting mid-May, the agency commenced the fill-and-finish process for approximately 4.8 million doses of vaccine intended for the current bird flu strain.
The push to enhance vaccine research and production follows recent reports of new human bird-flu cases in the U.S. and Australia. Moderna highlighted that the H5 vaccines in its trial are designed to combat the same virus family as the variant presently circulating in the U.S.
The Centers for Disease Control and Prevention (CDC) recently reported that the risk of bird flu to people in the U.S. remains low. However, the CDC is “preparing for the possibility of increased risk to human health.” Although the H5N1 viruses currently circulating do not easily spread between humans, the CDC cautioned that they “could change in ways that allow them to easily infect people and efficiently spread between people, potentially causing a pandemic.”
In terms of market performance, Moderna’s shares have surged by 48.7% year-to-date, a stark contrast to the S&P 500 (SPX), which has only risen by 10.4% in the same period. This robust performance reflects investor confidence in Moderna’s ongoing efforts to expand its vaccine portfolio using cutting-edge mRNA technology.
Key Takeaways:
- Funding and Government Support: The U.S. government is poised to provide substantial funding for Moderna’s late-stage trial of its mRNA bird-flu vaccine, highlighting significant federal support for innovative vaccine development.
- Moderna’s Commitment: The company is progressing with its pandemic flu candidate, mRNA-1018, showcasing its commitment to addressing global health challenges through its mRNA platform.
- Strategic Preparedness: The HHS is integrating mRNA platforms into its pre-pandemic flu vaccine stockpile program, underscoring the strategic importance of these technologies in preparing for potential public health crises.
- Public Health Measures: Despite the low current risk of bird flu to humans in the U.S., health authorities are proactively preparing for the possibility of increased risk, ensuring readiness against potential pandemics.
- Market Confidence: Moderna’s significant share price increase year-to-date, compared to the S&P 500, reflects strong market confidence in the company’s future prospects and its role in addressing emerging health threats.
Conclusion
Moderna’s potential partnership with the U.S. government for funding a late-stage mRNA bird-flu vaccine trial marks a pivotal advancement in the fight against infectious diseases. The substantial federal backing underscores the critical role of innovative technologies in public health preparedness. As Moderna continues to leverage its mRNA platform, both the company and the broader market exhibit optimism about its capacity to address current and future health challenges. The proactive stance of health authorities in the U.S. further ensures a robust defense against the evolving threat of influenza viruses, safeguarding public health and maintaining market confidence
