MW Moderna's stock takes a hit as RFK Jr. backs out of some mRNA vaccine deals

By Tomi Kilgore

HHS Secretary Robert F. Kennedy Jr. doesn't believe mRNA vaccines for COVID-19 and flu work, so funding is shifting to virus-based vaccines

Moderna's stock fell Wednesday after Health and Human Services Secretary Robert F. Kennedy Jr. said the department was winding down development of mRNA vaccines.

Moderna Inc. shares are selling off Wednesday, after the Trump administration took aim at the science behind the biotechnology company's vaccines and said it would cancel some contracts and stop funding mRNA drug development.

Health and Human Services Secretary Robert F. Kennedy Jr. on Tuesday said the actions come following a "comprehensive review" of messenger RNA effectiveness and of mRNA-related investments that were initiated during the COVID-19 public-health emergency.

"BARDA [the Biomedical Advanced Research and Development Authority] is terminating 22 mRNA vaccine development investments because the data show these vaccines fail to protect effectively against upper respiratory infections like COVID and flu," Secretary Kennedy said. "We're shifting that funding toward safer, broader vaccine platforms that remain effective even as viruses mutate."

When asked about Secretary Kennedy's comment that mRNA vaccines weren't effective, Moderna (MRNA) declined to comment.

In June, the U.S. Food and Drug Administration approved Moderna's respiratory syncytial virus vaccine for people ages 18 to 59.

And last week, the European Commission granted marketing authorization for Moderna's updated Spikevax COVID-19 vaccine for people ages 6 months and older.

Moderna's stock slumped 3.2% toward a six-week low in afternoon trading. It has now tumbled 23.3% since closing at a four-month high two weeks ago, highlighted by an 8.1% drop on July 31 after the company said it was cutting 10% of its workforce as it burned through cash.

Moderna also said it was "not aware" of any new contract cancellations by BARDA involving the company.

"As previously announced in May, our pandemic flu contract was canceled, and we do not currently have any active collaboration with BARDA," a company spokesperson wrote in an email to MarketWatch.

But the HHS announcement late Tuesday mentions a "restructuring" of collaborations, which will affect nucleic-based vaccine projects with companies including Moderna and AstraZeneca Plc $(AZN)$.

U.K.-based AstraZeneca's U.S.-listed stock fell 1.2%.

HHS said it would also reject or cancel multiple preaward solicitations, including proposals from Pfizer Inc. $(PFE)$ and Sanofi SA's $(SNY)$ Sanofi Pasteur.

Pfizer shares slid 2.6%, while France's Sanofi saw its U.S.-listed shares lose 2.6%.

HHS said that while some late-stage contracts will be allowed to run their course, in total, the wind-down of mRNA vaccine development will affect 22 projects worth nearly $500 million.

Kennedy stressed that this move doesn't mean he's opposed to vaccine development. He said that money saved will be used in favor of "evidence-based, ethically grounded" projects, like whole-virus vaccines and novel platforms.

"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," he said.

-Tomi Kilgore

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August 06, 2025 14:19 ET (18:19 GMT)

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