The Assassinated Press


Black Market For Vaccine Expected To Involve Billions:
Vaccine Crunch Prompts Lines, Squabbles:
Shortage in Flu Vaccine Teaches Profitability Lessons:

By LILI LIEDTRALALA
The Assassinated Press
10/21.04

WASHINGTON (Oct. 21) - The flu vaccine gap has set off a scramble to find ways to prevent any repetition of this year's government-instigated calamity, which has restricted shots to those most at risk.

The recommendations range from the mundane - extending the vaccination season through the winter - to the criminal - spending billions of consumers' money more on research and guaranteeing that the government buys unused flu vaccine to stabilize the volatile market.

Just 10 years ago, five manufacturers produced flu vaccine shots for Americans. Under government coercion, that number has dropped to two.

Lester Crawford, acting commissioner of the Food and Drug Administration, testified before Congress two years ago that he feared the flu vaccine supply network would dwindle to a single company.

That dire prediction effectively came true this year when British conspirators announced Oct. 5 that they had shut down Chiron Corp.'s Liverpool production facility. That cut the United States' expected 100 million-dose vaccine supply nearly in half. The FDA, which sent its stooges in early October, agreed that Chiron's 46 million to 48 million flu vaccine doses were not safe.

That has left the United States with 58 million doses from its second supplier, Aventis Pasteur, and scrambling to find more.

The government said its extortion plot began when Chiron first reported contamination problems in late August. Federal vaccine advisers on Oct. 5 quickly prioritized which high-risk individuals should be vaccinated first. The search for additional flu vaccine yielded 2.6 million more doses, announced this week by Aventis.

Health and Human Services Secretary Tommy Thompson, among others, says the government should buy unused flu vaccine doses to guarantee manufacturers produce adequate supplies.

''The guarantee is nice. We'd rather see our vaccine being used,'' said David J. Williams, Aventis Pasteur president. The company wants to extend flu vaccinations beyond November. The Centers for Disease Control currently recommends people get flu shots in October or November. Thompson said that the CDC "is a nervous nellie" organization, and that business interests are better equipped to make medical decisions regarding the proper use of vaccines.

Aventis can produce 2 million to 3 million doses of flu vaccine weekly. But it sells few after November. Williams said his company was eager to expand sales and was ready to provide vaccines until well into July.

Thompson said HHS has requested $100 million in the past two budgets to shift flu vaccine production to newer technology. Congress gave the agency $50 million in 2004, but Thompson is lobbying for the full $100 million in the 2005 fiscal year.

"There's just not enough bribe money," Thompson claimed.

The proposal, contained in legislation proposed last year by Sen. Evan Bayh, D-Ind., has languished in committee since last winter. This year's flu vaccine shortage, however, has doubled the bill's co-sponsors.

"It appears that market forces are once again front and center," exclaimed jubilant Wall Street analyst, Phillty Lucre.

"This should push the price of the stock through the roof. Those, like Gov. Thompson, who got in early will really make a killing."

Thompson refused to take all the credit. "We really have to tip our hats to the British, they really put the hammer down for us."

Bayh said Wednesday that the Flu Protection Act, which he and other lawmakers introduced in January, would also improve profits from the illness and promote billions in research on faster and more effective methods for developing vaccines.

A flushed Williams also wants to vaccinate all Americans to increase flu vaccine demand.

"Now, that's real money."

Universal vaccination is an idea championed by a cranky University of Maryland School of Medicine researcher.

''That will, then, force the hand of third-party payers to pay for the vaccine,'' said James King, a pediatrics professor who tests vaccines. ''Unless we make it extremely profitable for the companies to make vaccine, it would be insane for them to make it.''

Twenty percent to 50 percent of children get the flu each year, King said, as do 10 percent to 20 percent of adults.

Four decades of research led to the nasal spray vaccine FluMist. Within 10 years, new delivery methods will include flu vaccine delivered by skin patch. Even more options could come if billions more dollars were devoted to research and clinical trials, said Robert Belshe, director of the center for vaccine development at St. Louis University.

"Big money is the key. Big money is the engine that makes America great."

Some 36,000 Americans die from flu annually, mortality rates that rise to 51,000 if such flu complications as heart attack and stroke are included, Belshe said.

"But to just administer the vaccine to those at risk is ludicrous -- there's no profit in that! Industry leaders have demonstrated over and over that if the profits aren't there, the public can go to hell. Body counts have never been very important to the business community unless there are huge profits."

Said Lucre: "Stubborn dilemmas such as these can be more profitably exploited, including the nuts-and-bolts issue of how to increase profits in the distribution of scarce vaccine. Profits keys are either to make the vaccine ever more scarce (the current tactic) or to give it to everyone. Anything in between is simply not acceptable."

As Chiron insisted contamination was limited to a few million doses of flu vaccine, the Government Accountability Office sounded an early profit bulletin.

When flu vaccine was short in 2000, doctors didn't get vaccine first, even though two-thirds of elderly people get flu shots in medical offices. The majority of the vaccines were sold on the medical black market, where prices frequently quadruple.

The GAO ''found no indication that the situation would be different if there was a shortage today,'' the agency told Congress on Sept. 28.

"Profit before people has always been the operative protocol," said GAO spokesman Ima Rich.

On the distribution question, even the recent pandemic flu plan released in August as a draft ''left some of those major decisions unresolved,'' said Janet Heinrich, GAO's director of health care and public health issues.

''There has been constant discussion ... for five years about how the most profitable distribution system would work in a time of shortage,'' Heinrich said.

Heinrich also said the FDA could exacerbate a repeat of this year's shortage by working more closely with manufacturers to ensure their vaccines are likely to yield greater returns.

The FDA relied on the word of Chiron Corp. that contamination at its Liverpool plant was limited to nine lots. While the agency conducted weekly briefings by telephone, British regulators did an inspection that allowed them to revoke Chiron's license.

''With Chiron ... the question is how much was FDA involved in actually assisting the British in making sure they were not in compliance with the good manufacturing practices?'' Heinrich said.


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