HHS Cancels $766 Million in Funds for Moderna Bird Flu Shot

US health officials are terminating a contract with Moderna Inc. worth up to $766 million to develop vaccines for bird flu, a major setback for the company as it faces additional government scrutiny over immunizations.

Moderna said in a statement Wednesday that the vaccine was shown to be safe and well-tolerated in early clinical studies. It had planned to move the vaccine into later-stage trials with funding from the Department of Health and Human Services, but was notified that the agency is canceling its award.