Trump Admin. Reconsiders $590M Funding for Moderna’s Bird Flu Vaccine

The Trump administration is contemplating withdrawing a substantial contract awarded to Moderna Inc. (NYSE: MRNA) for the development of a bird flu vaccine. This $590 million agreement, initially secured during the closing days of the Biden administration, is under scrutiny as the government reassesses its financial commitments towards mRNA-based vaccine initiatives.

The reconsideration of this funding comes amid a severe outbreak in the U.S., which has notably affected livestock and poultry, leading to a surge in egg prices. With declining sales of its Covid vaccine, Moderna faces potential hurdles in advancing its proposed large-scale trial should the funding be retracted. The uncertainty is further compounded by Robert F. Kennedy Jr., the newly appointed head of the Department of Health and Human Services, who has been an outspoken critic of Covid vaccines.

This development has also led to the suspension of key public health campaigns and layoffs within the CDC’s immunization department.

Moderna Stock Takes a Hit as Trump Admin. Mulls Withdrawing Vaccine Contract

Moderna’s stock has experienced notable fluctuations in light of the recent news. The stock opened at $33.58 yesterday and was trading at $32.09 in the premarket trading session.

The stock remains significantly below its 52-week high of $170.47, reflecting broader challenges faced by the company. The stock’s beta of 1.585 indicates potential volatility, while the forward P/E ratio of -3.8597703 suggests anticipated financial difficulties. With a market capitalization of approximately $12.96 billion and a short ratio of 3.35, investor sentiment appears cautious.

Moderna’s financial profile presents a mixed picture. The company’s book value stands at $28.241, with a price to book ratio of 1.1890515. The debt to equity ratio is notably high at 6.853, indicating a significant level of debt relative to equity. The trailing EPS is -9.28, with a forward EPS projected at -8.7, underscoring ongoing financial challenges.

However, the company maintains a healthy quick ratio of 3.453 and a current ratio of 3.671, suggesting adequate liquidity to cover short-term obligations. Analysts have issued a “hold” recommendation with a mean score of 2.76923. The target price range varies widely, with a high of $212.0 and a low of $25.0, while the mean target price is $56.00545, and the median target price is $45.0.

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MRNA Recent Trends

Recent trading history shows a pattern of variability in Moderna’s stock price. On February 25, 2025, the stock opened at $33.98 and closed at $33.28. The following day, it opened slightly lower at $33.26 but closed higher at $33.58. This pattern of minor fluctuations is consistent with previous trading days, such as February 24, when the stock opened at $33.88 and closed at $33.90.

Earlier in the week, on February 21, the stock saw a more pronounced increase, opening at $33.89 and closing at $35.53, before experiencing a decline on February 20, when it opened at $36.23 and closed at $33.73. This volatility reflects investor uncertainty amid the ongoing developments surrounding Moderna’s vaccine funding and broader market conditions.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.