The US government has awarded $176 million to pharmaceutical group Moderna to develop a bird flu vaccine, with late-stage testing expecting to start next year.

The contract includes options to accelerate the development timeline if needed, based on an increase in human cases, the severity of cases or human-to-human transmission of the virus, according to a report on Reuters.

The first outbreak of the H5N1 virus in US dairy cattle was reported in March.

It has since infected more than 130 herds in 12 states as well as three farm workers.

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