Moderna, Inc. (MRNA) shares plummeted 5% in the pre-market trading session on Thursday, following reports that the Trump administration is considering withdrawing funding for the company's $590 million bird flu vaccine contract.
The contract, awarded by the Biden administration in its final days, aimed to advance the development of Moderna's messenger RNA (mRNA)-based bird flu vaccine. However, the new Trump administration is reevaluating the deal as part of a broader push to scrutinize spending on mRNA vaccines.
According to Bloomberg News, the review is part of a government effort to evaluate spending on mRNA-based vaccines, a technology widely used during the COVID-19 pandemic. The potential loss of this significant funding could deal a blow to Moderna's future revenue and growth prospects, as the bird flu contract was seen as a significant part of its pipeline.
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