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Shares of Moderna ( MRNA ) took off Tuesday when the biotech firm announced that the U.S. government has awarded it more than a half a billion dollars to develop a vaccine that can be used against bird flu.

The company said the $590 million grant from the U.S. Department of Health and Human Services was aimed at accelerating development of "mRNA-based pandemic influenza vaccines," including mRNA-1018.

Moderna explained that it began Phase 1/2 testing of mRNA-1018 in 2023 in healthy adults aged 18 and up, including candidates against the H5 and H7 avian influenza viruses. It noted that based on positive preliminary results, it was launching a Phase 3 study.

The Centers for Disease Control and Prevention (CDC) reported that bird flu "is widespread in wild birds worldwide and is causing outbreaks in poultry and U.S. dairy cows with several recent human cases in U.S. dairy and poultry workers." It noted that while the current public health risk is low, it is monitoring the situation carefully.

Eggs Prices Rising Because of Bird Flu, Cal-Maine Foods Says

Earlier this month, Cal-Maine Foods ( CALM ), the biggest U.S. egg producer, said egg prices have continued to rise because of limits on production because of the bird flu outbreak.

Even with today's roughly 5% increase, Moderna shares remain nearly 65% lower over the last year as COVID-19 vaccine sales slump.

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