HHS Halts Development Of Oral COVID-19 Vaccine, RFK Jr. Says

The Department of Health and Human Services has paused work on a COVID-19 vaccine that can be taken orally.

“While it is crucial that the Department [of] Health and Human Services (HHS) support pandemic preparedness, four years of the Biden administration’s failed oversight have made it necessary to review agreements for vaccine production, including Vaxart’s,” Robert F. Kennedy Jr. said, according to Fox News.

“I look forward to working with Vaxart and medical experts to ensure this work produces safe, effective, and fiscal-minded vaccine technology,” he added.

MAHA: Do you support RFK Jr. putting a HALT to a multi-million dollar Biden-era contract with Vaxart to create new Covid-19 vaccines? pic.twitter.com/khIe3GQG6Z

— American Values (@AVPac_US) February 26, 2025

BREAKING: RFK HALTS NEW COVID VACCINE

SAVES THOUSANDS BY IMMEDIATELY ENDING DANGEROUS HUMAN TRIALS

As his first major action as Secretary of Health and Human Services, RFK Jr. has ordered an immediate suspension for all actions related to the Vaxart oral covid shot,… pic.twitter.com/7EDuuLhxxF

— Died Suddenly (@DiedSuddenly_) February 26, 2025

Fox News reports:

Kennedy issued a 90-day stop-work order on Friday related to the HHS contract with American biotech company Vaxart Inc., which is working to develop a new COVID-19 vaccine that can be taken orally. The stop-work order comes as 10,000 individuals were slated to begin clinical trials on Monday.

The trial is only paused, not terminated, with Kennedy and other health officials set to examine the study’s initial findings over the next 90 days before deciding on next steps.

The creation of a new COVID-19 vaccine was part of the Biden administration’s $4.7 billion Project NextGen initiative, which was launched in 2023 and works to streamline the development of new vaccines. The Vaxart vaccine was specifically funded through an agreement with the Biomedical Advanced Research and Development Authority (BARDA), which is a department within the Administration for Strategic Preparedness and Response under the HHS umbrella.

BARDA obligated roughly $460 million to Vaxart’s development of the new vaccine, with a total of $240 million already authorized for the preliminary study, Fox Digital learned.

A recent modification to the contract would have allowed Vaxart to invoice BARDA for the remaining roughly $230 million for clinical trials, but the stop-work order prevents the biotech company from invoicing BARDA until further notice. Vaxart, however, can still invoice HHS related to medical monitoring of individuals who took part in an initial round of trials, Fox Digital learned.

Oral COVID vaccine trial halted!
Thank you @SecKennedy https://t.co/RhBflYv6EC

— Mary Talley Bowden MD (@MdBreathe) February 26, 2025

From Investing.com:

Vaxart, Inc. (NASDAQ:VXRT), a biotech firm specializing in the development of vaccines with a market capitalization of $162 million, has been directed to halt work on a significant government-funded project. According to InvestingPro data, the company faces challenges with weak gross profit margins and rapid cash burn. On Monday, the company disclosed that it received stop work orders from Advanced Technology International (ATI) on February 21, 2025.

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The orders mandate Vaxart to cease all activities related to a project agreement with ATI, except for specific follow-up efforts for a 400-person cohort. This agreement, initiated on June 13, 2024, was part of a consortium managed by ATI and funded by the Biomedical Advanced Research and Development Authority (BARDA), a U.S. Department of Health and Human Services agency. Despite operational challenges, InvestingPro analysis shows the company maintains more cash than debt on its balance sheet, though its short-term obligations currently exceed liquid assets.

The stop work directive will be in effect for 90 days from the date of notice. During this period, ATI will decide, under government direction, whether to cancel the stop work order, extend it, or terminate the project as outlined in the agreement.

The company’s press release included forward-looking statements regarding the potential outcomes of this suspension, including the possibility of receiving additional funding under the project agreement or actions by the U.S. government concerning the work stoppage. However, it also cautioned investors about the risks associated with the company’s ability to meet the project’s milestones and deliverables.