The U.S. government has granted Moderna (NASDAQ: mRNA) $590 million to fund the development of a flu vaccine for poultry.

The US government has awarded Moderna (NASDAQ:MRNA) $590m to advance its development of a flu vaccine for poultry, as the country doubles down on efforts to combat an increasing number of human infections. The funding is a supplement to the $176m awarded by the US Department of Health and Human Services last year to complete the late-stage development and testing of a pre-pandemic mRNA-based H5N1 flu vaccine. The funding will also support the expansion of clinical studies for up to five additional flu pandemic subtypes, Moderna said on Friday, adding 4.52 per cent to $35.6 in after-hours trading. Xavier Becerra, secretary of health and human services, said in a statement: “Flu variants have in the past proven especially unpredictable and dangerous for humans. Accelerating the development of a new vaccine will keep us ahead of the curve and ensure Americans have the tools they need to stay safe.” The company said it was preparing to advance its experimental mRNA-1018 vaccine into late-stage trials based on preliminary data from an early-to-mid-stage study, and planned to present the data at a medical conference. The funding was awarded through the Rapid Response Partnership Vehicle consortium, which is funded by the Biomedical Advanced Research and Development Authority. Since April, nearly 70 people have been infected with the flu in the US, most of them farm workers as the flu virus spreads through poultry and dairy herds. Most human infections have been mild, but one death was reported in Louisiana last week. The Centers for Disease Control and Prevention said the risk to the general public was low, and there was no evidence of further human-to-human transmission. Earlier this week, the biotechnology company continued to cut costs and expand its portfolio, trimming its 2025 sales forecast by about $1bn, as it faces some headwinds later this year. Moderna now expects revenue of between $1.5bn and $2.5bn in 2025, with most of that coming in the second half of this year. Moderna plans to get 10 new products approved over the next three years, including a combined Covid and flu vaccine and a “next-generation” Covid vaccine to bolster its portfolio. The company said on Monday it expects three approvals in 2025.