U.S. Department of Health and Human Services Announces Phase-Out of Funding for mRNA Vaccine Development

The US Department of Health and Human Services plans to phase out funding for mRNA vaccine development, shifting focus to other vaccine platforms. This decision has impacted global vaccine stocks, with prices trading lower. The funding for mRNA-related vaccine activities will be coordinated and ended by 22 grants.

The U.S. Department of Health and Human Services (HHS) has announced a coordinated wind-down of its mRNA vaccine development activities under the Biomedical Advanced Research and Development Authority (BARDA), affecting 22 projects worth nearly $500 million [1]. This decision, made following a comprehensive review of mRNA-related investments, signals a broader shift in federal vaccine development priorities.

The wind-down includes the cancellation of BARDA’s award to Moderna/UTMB for an mRNA-based H5N1 vaccine, termination of contracts with Emory University and Tiba Biotech, and de-scoping of mRNA-related work in existing contracts with Luminary Labs, ModeX, and Seqirus [1]. Additionally, multiple pre-award solicitations, including proposals from Pfizer, Sanofi Pasteur, CSL Seqirus, and Gritstone, have been rejected or canceled [1]. The restructuring of collaborations with DoD-JPEO, affecting nucleic acid-based vaccine projects with AAHI, AstraZeneca, and HDT Bio, further illustrates the extent of the changes [1].

While some final-stage contracts will be allowed to run their course to preserve prior taxpayer investment, no new mRNA-based projects will be initiated. HHS has also instructed its partner, Global Health Investment Corporation (GHIC), to cease all mRNA-based equity investments [1]. This move is part of a broader strategy to focus on vaccine platforms with stronger safety records and transparent clinical and manufacturing data practices [1].

The decision has had an immediate impact on global vaccine stocks, with prices trading lower following the announcement. Companies such as Seqirus of CSL Limited, Pfizer, Sanofi, and AstraZeneca have been affected [2].

HHS Secretary Robert F. Kennedy, Jr., stated that the decision was taken because the data show these vaccines fail to protect effectively against upper respiratory infections like COVID and flu. He emphasized that the agency supports safe, effective vaccines for every American who wants them, and that this move is part of a broader effort to invest in better solutions [1].

The shift in funding priorities reflects a growing emphasis on evidence-based, ethically grounded solutions, such as whole-virus vaccines and novel platforms. This strategic pivot aims to ensure that future vaccine development remains aligned with current scientific standards and public health needs.

References:
[1] https://www.hhs.gov/press-room/hhs-winds-down-mrna-development-under-barda.html
[2] https://seekingalpha.com/news/4479579-hhs-halts-funding-mrna-vaccine-activities