The U.S. health department is canceling or scaling back 22 BARDA-backed mRNA projects worth nearly $500 million, shifting funding toward broader vaccine platforms.
Shares of Moderna (MRNA), Pfizer (PFE), and Sanofi (SNY) drew increased attention on Tuesday as traders reacted to the U.S. government’s move to halt future mRNA vaccine development under the Biomedical Advanced Research and Development Authority (BARDA).
Meanwhile, retail sentiment soured on AstraZeneca (AZN) after its vaccine partnership was identified as part of the federal wind-down.
The U.S. Department of Health and Human Services (HHS) said that it will terminate or restructure 22 mRNA vaccine-related projects under BARDA, affecting nearly $500 million in funding.
The decision follows a review of pandemic-era investments in mRNA technologies and represents a pivot in vaccine development strategy.
“We reviewed the science, listened to the experts, and acted,” said HHS Secretary Robert F. Kennedy, Jr.
HHS stated that its decision to terminate 22 mRNA vaccine development projects under BARDA was based on scientific data indicating the limited effectiveness of such vaccines in preventing upper respiratory infections, such as COVID-19 and influenza.
The agency plans to redirect funding toward alternative vaccine platforms that offer broader protection and remain effective against evolving viruses.
The canceled programs include BARDA’s award to Moderna and the University of Texas Medical Branch for an mRNA-based H5N1 avian flu vaccine.
Contracts with Emory University and Tiba Biotech are also being terminated.
Existing agreements with Luminary Labs, ModeX, and Seqirus, Sanofi’s vaccine subsidiary, are being revised to exclude mRNA components.
Several pre-award solicitations have been rejected or canceled, including proposals from Pfizer, Sanofi Pasteur, CSL Seqirus, Gritstone, and others under BARDA’s Rapid Response Partnership Vehicle and VITAL Hub.
HHS is also restructuring collaborations with the Department of Defense’s Joint Program Executive Office (JPEO), impacting nucleic acid-based vaccine efforts by AAHI, AstraZeneca, and HDT Bio.
While some late-stage contracts, such as those with Arcturus and Amplitude, will be allowed to conclude, HHS said that no new mRNA projects will be initiated under BARDA.
Additionally, the department has directed the Global Health Investment Corporation, which manages BARDA Ventures, to stop all equity investments in mRNA technologies.
Other uses of mRNA technology within HHS are not impacted by the announcement.
“Let me be absolutely clear: HHS supports safe, effective vaccines for every American who wants them. That’s why we’re moving beyond the limitations of mRNA and investing in better solutions,” said Kennedy.
On Stocktwits, retail sentiment was ‘bullish’ for MRNA and SNY, while PFE saw ‘extremely bullish’ sentiment with ‘extremely high’ message volume. In contrast, sentiment turned ‘bearish’ for AZN, with message volume remaining ‘normal’.
So far this year, MRNA is down 34.6%, PFE is down 7%, SNY is down 0.7%, while AZN is up 13.1%.
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