Moderna (MRNA) stock toppled Thursday on reports the Trump administration is considering pulling the $590 million in funds the company received to develop a bird flu vaccine.

The contract was awarded in the final days of the Biden administration and amid an increase in the number of bird flu cases. According to the Centers for Disease Control and Prevention, the H5 bird flu is widespread in wild birds and has caused outbreaks in poultry and U.S. dairy cows. It has also led to 70 cases in humans and one death in the U.S.

The funding came from the Center for Biological Advance Research and Development Authority, a division of the Department of Health and Human Services. But the contract was approved before Robert F. Kennedy Jr., or RFK Jr., was confirmed as the new head of HHS.

"While it is crucial that the U.S. Department and Health and Human Services support pandemic preparedness, four years of the Biden administration's failed oversight have made it necessary to review agreements for vaccine production," HHS communications director Andrew Nixon told Barron's in an email.

The agency didn't immediately respond to a request for comment from Investor's Business Daily. A representative of Moderna said the company doesn't have anything to share at this time.

In afternoon action, Moderna stock slumped more than 3% to 32.45.

Moderna Stock Faces Off With RFK Jr.

Moderna is best-known for its role in developing the Covid vaccine called Spikevax. The biotech company became a household name in 2020, alongside Pfizer (PFE).

But Moderna stock has fallen off as the pandemic hit the rearview. Now, the company is looking for its next big act.

The CDC says the bird flu remains a low public health risk. However, it has had far-reaching economic implications, contributing to the rise of egg prices at grocery stores.

RFK Jr. has long been a vocal skeptic of vaccines. After President Donald Trump's victory, Kennedy said he wouldn't "take away anybody's vaccines." But after his confirmation, he doubled down on his view that vaccines don't undergo enough safety testing. Experts say that's a baseless claim.

Flu Shot Meeting Canceled

Also Thursday, the Food and Drug Administration unexpectedly canceled its annual meeting to choose the strains targeted by this year's suite of flu shots. According to CNN, Dr. Paul Offit said there's no indication the meeting has been postponed. It's just canceled, he said.

The meeting takes place every March to give companies a six-month window to develop each year's flu shots.

Sanofi (SNY) and GSK (GSK) usually make annual flu shots in the U.S., while Moderna is testing out a stand-alone influenza vaccine. The company is running a two-season Phase 3 study. The timing remains up in the air and is dependent on how fast flu cases accrue.

Moderna stock has mostly traded below its 50-day line since June, according to MarketSurge. The stock has a poor Relative Strength Rating of 5, meaning shares have performed in the bottom 5% of all stocks when it comes to 12-month performance, according to IBD Digital.

Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.

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