[Ip-health] FT: Novartis rejects call for vaccine donations

[Eleanor Blume]

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http://www.ft.com/cms/s/0/875066ae-5902-11de-80b3-00144feabdc0,dwp_uuid=3D8=
19fc44c-33e2-11de-9eea-00144feabdc0.html?nclick_check=3D1

*Novartis rejects call for vaccine donations*

By Andrew Jack in London; Published: June 14 2009 17:08 | Last updated: Jun=
e
15 2009 03:41

*Novartis <http://markets.ft.com/tearsheets/performance.asp?s=3Dch:NOVN>*, =
the
Swiss pharmaceuticals group, defied the World Health Organisation and some
of its corporate peers by ruling out a donation to the poor of vaccines to
counter the latest flu pandemic, and saying developing nations or donor
nations should cover the costs.

Daniel Vasella, Novartis chief executive, told the Financial Times that he
would consider offering discounted pricing to low-income nations, but unlik=
e
other drug companies, including
*GlaxoSmithKline<http://markets.ft.com/tearsheets/performance.asp?s=3Duk:GS=
K>
*, would not offer vaccines for free. He said: =93If you want to make
production sustainable, you have to create financial incentives.=94

His comments were a rebuff to Margaret Chan, WHO director-general, who last
week said the H1N1 swine flu outbreak had become a pandemic. She has called
on vaccine makers to show =93solidarity=94 in offering vaccines to the poor=
.

The remarks highlight divisions in the industry.
*GSK<http://markets.ft.com/tearsheets/performance.asp?s=3Duk:GSK>
* has pledged 50m doses of its flu vaccine to the poor, and some smaller
producers in developing countries say they will earmark 10 per cent of thei=
r
production for free distribution.

Mr Vasella said a =93significant=94 proportion of Novartis=92s H1N1 stock h=
ad been
reserved by governments, raising the prospect of shortages even among riche=
r
nations that can afford to purchase vaccines he estimated would cost $10-$1=
5
(=A36-=A39) a dose, and more for smaller orders and those placed later.

Meanwhile, the US government has already purchased $289m of H1N1 vaccines
from Novartis, although it has yet formally to approve the product.

Novartis owns Chiron, the US vaccine company that on Friday claimed it was
the first producer to complete trial H1N1 vaccine batches using an
accelerated cell-based technique rather than conventional production in
eggs.