Shares of Moderna Inc. (MRNA) surged more than 6% in pre-market trading on Tuesday, following the announcement that the biotech company secured a $590 million award from the U.S. government to accelerate the development of its experimental bird flu vaccine candidate, mRNA-1018.
The funding from the Department of Health and Human Services (HHS) comes as the United States doubles down on efforts to tackle the increasing number of bird flu infections in humans. Moderna stated that it is preparing to advance mRNA-1018 into late-stage clinical trials based on promising preliminary data from an early-to-mid stage study.
Analysts believe that the successful development and commercialization of mRNA-1018 could provide a significant revenue stream for Moderna in the future. The substantial government award for the company's pandemic flu vaccine program was welcomed by investors, driving Moderna's stock higher in Tuesday's pre-market session.
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