US awards Moderna $176 million to produce bird flu vaccine

The U.S. government has awarded $176 million to Moderna (MRNA.O), opens new tab to advance development of its bird flu vaccine, the company said on Tuesday, as concerns rise over a multi-state outbreak of H5N1 virus in dairy cows and infections of three dairy workers since March.

Shares of the Cambridge, Massachusetts-based company rose more than 2% to $118.32 in early trade.

The funds from the U.S. Biomedical Advanced Research and Development Authority will be used to complete late-stage development and testing of a pre-pandemic mRNA-based vaccine against H5N1 avian influenza, the company said in a statement.