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Flu vaccine setback underscores growing policy risk for pharma

The news: Moderna hit a regulatory setback on its potential mRNA flu vaccine after being rejected for an FDA review.

  • The FDA’s Center for Biologics Evaluation and Research (CBER) denied Moderna the chance to submit an application for the vaccine.
  • The news surprised the drugmaker, as it plunked down a non-refundable priority review voucher to speed up the process.
  • CBER director Vinay Prasad signed the letter noting the study was not “adequate and well controlled"—but, according to STAT, also overruled FDA staffers who were ready to review Moderna’s candidate.

Why it matters: The Moderna rejection comes as President Trump-led health agencies narrow vaccine guidance and roll back recommendations.

Over the past year, federal health agencies have overhauled vaccine oversight by:

While agencies shift policy, public trust remains a mixed bag. According to the latest KFF health information and trust tracking data, 80% of US adults maintain confidence in the safety of the MMR and polio vaccines, but confidence drops to 65% for flu and 48% for COVID-19 vaccines.

Implications for pharma companies: The post-COVID-19 pendulum has swung toward skepticism—both within federal agencies and among parts of the public. Moderna’s flu setback underscores that even high-profile vaccine makers can no longer assume regulatory predictability.

More broadly, vaccines—once viewed as stable, recurring revenue drivers—are becoming more sensitive to policy shifts and public sentiment. For pharma companies investing in vaccines or technologies like mRNA, it adds a new layer of risk, making it harder to plan future pipelines, decide where to spend money, and manage investor expectations.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Not a subscriber? Click here to get a demo of our full platform and coverage.

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