Moderna (MRNA) is facing a review of its $590 million contract for a bird flu vaccine that was awarded at the tail end of the Biden administration, Bloomberg News reported Thursday, citing unnamed people familiar with the matter.

The review is part of a broader effort by the government to evaluate spending on mRNA-based vaccines, a technology widely used during the COVID-19 pandemic, according to the news outlet.

The contract was reportedly issued during a severe bird flu outbreak that has affected poultry and livestock across the US, raising concerns about the virus' potential to spread to humans.

A spokesperson for the Department of Health and Human Services said to Bloomberg the review is necessary due to what it described as inadequate oversight during the Biden administration.

As sales of its Covid vaccine decline, Moderna has been looking for new revenue opportunities, with the bird flu contract seen as a significant part of its pipeline, Bloomberg quoted the sources as saying.

Both Moderna and the White House did not immediately respond to MT Newswires' request for comment.

Moderna's shares were down more than 3% in recent Thursday premarket activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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