Vaccine Makers Curtail Research and Cut Jobs
•February 16, 2026
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Companies Mentioned
Why It Matters
The slowdown threatens the pipeline of new vaccines, potentially compromising public‑health preparedness and eroding the biotech sector’s growth engine.
Key Takeaways
- •Moderna cuts late‑stage vaccine trials
- •Texas startup cancels vaccine factory
- •San Diego manufacturer lays off workers
- •Investors shy away from vaccine sector
- •Federal support for vaccines dwindles
Pulse Analysis
The appointment of Robert F. Kennedy Jr. as health secretary has shifted the regulatory tone in Washington, reviving anti‑vaccine rhetoric that once lingered on the political fringe. By questioning the safety and necessity of established immunizations, the administration is signaling a retreat from the robust federal funding and fast‑track approvals that fueled the Covid‑19 vaccine boom. This policy pivot unsettles the delicate balance between public‑health objectives and private‑sector incentives, prompting companies to reassess long‑term research commitments.
Operationally, the impact is already visible. Moderna announced a pullback of several late‑stage studies, citing an uncertain policy landscape that could delay approvals and market entry. Meanwhile, a Texas‑based biotech cancelled plans for a new production facility that would have created dozens of high‑skill jobs, and a San Diego manufacturer announced layoffs affecting its vaccine‑technology line. These moves reflect a broader risk‑averse stance among investors, who are now demanding higher returns for a sector perceived as politically volatile, leading to stock volatility and reduced capital inflows.
The longer‑term consequences could reshape the vaccine ecosystem. With fewer pipelines, the United States may become more reliant on foreign manufacturers for emerging threats, undermining national health security. Biotech firms might diversify into therapeutics less exposed to political scrutiny, diluting expertise that once concentrated on vaccines. Stakeholders—including policymakers, investors, and public‑health advocates—must weigh the short‑term political gains against the strategic cost of eroding a critical innovation engine that has historically delivered rapid, life‑saving solutions.
Vaccine Makers Curtail Research and Cut Jobs
Federal policies under Robert F. Kennedy Jr. that are hostile to vaccines have “sent a chill through the entire industry,” one scientist said.
By Rebecca Robbins
Feb. 16, 2026, 1:00 p.m. ET
Moderna says it plans to pull back on late‑stage studies of some of its experimental vaccines. Credit…Brian Snyder/Reuters
In Massachusetts, Moderna is pulling back on vaccine studies. In Texas, a small company canceled plans to build a factory that would have created new jobs manufacturing a technology used in vaccines. In San Diego, another manufacturing company laid off workers.
When Robert F. Kennedy Jr. was picked in November 2024 to become the next health secretary, public health experts worried that the longtime vaccine skeptic would wreak havoc on the fragile business of vaccine development.
Those fears are beginning to come true, according to executives and investors involved with companies that develop and sell vaccines and the technology that is best known for the Covid vaccines.
At conferences and in interviews, they described the emerging consequences of the Trump administration’s dismantling of the longstanding federal support for vaccines.
“There will be less invention, investment and innovation in vaccines generally, across all the companies,” Dr. Stephen Hoge, the president of Moderna, said in an interview.
The Trump administration said it was not discouraging innovation.
But investors have grown hesitant to bet on a field that has fallen out of favor in Washington. Major manufacturers are reporting declining sales of their shots. Smaller companies are taking the brunt of the impact, with some stocks whipsawing in response to the changes.
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