July 2 (Reuters) - The U.S. government has awarded $176

million to Moderna ( MRNA ) to advance development of its bird

flu vaccine, the company said on Tuesday, as concerns rise over

a multi-state outbreak of H5N1 virus in dairy cows and

infections of three dairy workers since March.

The funds from the U.S. Biomedical Advanced Research and

Development Authority will be used to complete late-stage

development and testing of a pre-pandemic mRNA-based vaccine

against H5N1 avian influenza, the company said in a statement.

The agreement also includes additional options to prepare

and accelerate a response to future public health threats, the

company said.

In March, U.S. officials reported the first outbreak of the

H5N1 virus in dairy cattle, which has since infected more than

130 herds in 12 states.

Scientists are concerned that exposure to the virus in

poultry and dairy operations could increase the risk that the

virus will mutate and gain the ability to spread easily among

people, touching off a pandemic.

Last year, Moderna ( MRNA ) started a safety and immunogenicity study

of its bird flu vaccine called mRNA-1018 in healthy adults aged

18 and older. That study included both the H5 subtype of bird

flu that is currently circulating in dairy cattle, as well as

the H7 bird flu subtype.

Results of that study are expected this year and will be

used to map out late-stage development plans, the company said.

Moderna's ( MRNA ) vaccine uses mRNA, or messenger RNA, the

technology in its COVID-19 shot.

"mRNA vaccine technology offers advantages in efficacy,

speed of development and production, scalability, and

reliability in addressing infectious disease outbreaks, as

demonstrated during the COVID-19 pandemic," Moderna ( MRNA ) CEO Stephane

Bancel said in a statement.

Manufacturing of conventional flu vaccines using cell or

egg-based technology can take four to six months.

U.S. officials have said they were moving bulk vaccine from

CSL Seqirus that closely matches the current virus into

finished shots that could provide 4.8 million doses if needed.

Those doses would potentially be used to inoculate farm

workers and others at risk of exposure to the virus. For the

general public, U.S. and global health officials say the risk

from bird flu remains low.