Moderna stock seesawed Thursday after confirming the U.S. government is nearing a deal to fund its messenger-RNA-based pandemic bird flu vaccine.
The news comes amid growing concerns about the H5 bird flu, which has shown up on egg farms in 48 states and in dairy cows in nine states. The Centers for Disease Control and Prevention classifies the public health risk as low. However, a third dairy worker tested positive Thursday for the virus. All three have occurred since April 1. Two of the patients were in Michigan.
A Moderna spokeswoman confirmed the company is in discussions with the U.S. government to move forward with the pandemic flu candidate, dubbed mRNA-1018. The company has already finished dosing healthy participants in a Phase 1 and Phase 2 study. The company expects its results soon.
"The H5 vaccines in this trial cover the same clade as the currently circulating variant in the United States," she said in an email to Investor's Business Daily. "We remain committed to using our mRNA platform to respond to public health concerns."
Pfizer began a first-phase study of its pandemic influenza vaccine late last year. Early data suggests the vaccine generated "notable increases" in antibodies capable of handling the H5 strain.
In a recent statement, Pfizer said its platform "could be leveraged to rapidly provide a vaccine candidate targeting the specific pandemic influenza strain."
Moderna stock jumped 2.4%, closing at 151.49. Pfizer stock rose to 1.4% to 28.19.
Moderna Stock: Bird Flu Vaccine In Focus
Funding from the government's Biomedical Advanced Research and Development Authority, known as BARDA, could come as soon as next month, according to Financial Times, which cited people familiar with the matter.
The agreement is expected to be for several tens of millions of dollars and could include a commitment to buy doses if the final-phase studies are successful. The U.S. government is also reportedly in discussions with Pfizer. In an email to IBD, the company referred to its earlier written statement.
A potential bird flu vaccine could be a boon for Pfizer and Moderna, whose sales have plummeted in the aftermath of the Covid pandemic. Moderna stock touched a recent high at 170.47 on May 24, up more than 71% on a year-to-date basis. Shares have pulled back slightly in the week since.
Pfizer stock has also fallen over the last week, though it climbed to a four-month high on May 22.
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