Moderna Inc (NASDAQ:MRNA, XETRA:0QF) has secured new backing to advance its bird flu vaccine candidate, restoring momentum to a program that earlier this year appeared to be losing official support.
The company has received up to US$54.3 million from the Coalition for Epidemic Preparedness Innovations (CEPI) to support late-stage development of mRNA-1018, an experimental vaccine targeting the H5 strain of avian influenza. The funding is intended to underpin a Phase III clinical trial, currently expected to begin in 2026, and includes provisions around global access if the vaccine progresses.
The announcement has come amid a period of stabilisation for Moderna shares, which have recovered over recent weeks to trade near US$31, following a prolonged post-COVID downturn. Shares rose modestly on Thursday, with the funding providing renewed clarity around the future of a program that had been left in limbo.
From US government backing to alternative funding
Earlier in 2025, Moderna lost support for the same bird flu program after the US Department of Health and Human Services withdrew from a broader pandemic preparedness contract, as the Trump government moved to unwind elements of the Biden-era public health and biomedical funding agenda, particularly work involving messenger RNA.
The US had previously expanded its use of advance purchase agreements and development contracts to support vaccines and therapeutics aimed at future pandemics, building on mechanisms created during COVID. In President Trump’s second term, however, it has scaled back federal involvement in some preparedness programs and placed greater emphasis on private-sector-led development.
For Moderna, the shift meant seeking alternative sources of funding to keep long-horizon infectious disease programs moving. CEPI’s involvement reflects how companies are increasingly turning to international organisations and non-governmental backers when US government support is reduced or withdrawn.
As part of the agreement, Moderna has committed to reserving 20% of early manufacturing capacity for low- and middle-income countries, reflecting lessons from the uneven global rollout of COVID vaccines.
Why bird flu matters
The renewed focus on avian influenza reflects ongoing concern among public health authorities. H5N1 has been circulating widely in birds and poultry for several years, with occasional spillover into mammals and sporadic human infections.
While sustained human-to-human transmission has not occurred, reported human cases have often been severe. Continued circulation increases the risk that the virus could evolve in ways that make transmission easier, particularly in environments with close human–animal contact.
Crucially, seasonal influenza vaccines offer little protection against H5 strains. They are designed around circulating human flu viruses and do not provide reliable immunity against avian variants. Pre-pandemic vaccines aim to address that gap by providing a head start if a dangerous strain begins spreading.
mRNA’s role in pandemic response
Compared with traditional egg-based influenza vaccines, mRNA vaccines can be designed and manufactured more rapidly, allowing faster adaptation if a virus mutates.
That flexibility proved decisive during the early COVID response and remains one of the strongest arguments for mRNA-based pandemic countermeasures. However, influenza presents its own challenges. The virus mutates rapidly, and even a well-matched prepandemic vaccine may offer incomplete protection against a future variant.
Manufacturing scale is another constraint. Producing enough doses quickly — even with modern platforms — remains difficult without sustained investment and advance planning.
More than just a vaccine story
For Moderna, the revived bird flu program also fits into a broader effort to demonstrate that its mRNA technology has relevance beyond COVID boosters, particularly in infectious diseases where speed and adaptability matter.
Whether avian influenza ever becomes a pandemic remains uncertain. What is clearer is that preparedness efforts are being tested by shifting political priorities and funding models — and that companies developing pandemic countermeasures increasingly need to navigate that uncertainty alongside the science.