US government agrees to buy updated Covid-19 vaccines

The Biden administration on Friday said it would buy 66 million doses of Moderna Inc (NASDAQ: MRNA) updated Covid-19 vaccine as part of a booster campaign.

The deal, which is worth $1.74 billion, also includes the option to purchasing up to 234 million additional doses.

The US government has also agreed to pay $3.2 billion for 105 million doses of Pfizer Inc.’s (NYSE: PFE) Covid-19 vaccine.

The pharma companies are modifying current Covid-19 vaccines to provide stronger protection against Omicron variant. The Food and Drug Administration would need to authorize the modified shots.