Novartis says won't give poor free H1N1 vaccines- Financial Times

[Shiloh]

Source: http://www.reuters.com/article/rbssH...33672820090614

Novartis says won't give poor free H1N1 vaccines-FT
Sun Jun 14, 2009 7:05pm EDT



LONDON, June 14 (Reuters) - Swiss drugs company Novartis (NOVN.VX) will not give free vaccines against H1N1 flu to poor countries, though it will consider discounts, the Financial Times reported on Sunday.

"If you want to make production sustainable, you have to create financial incentives," the FT quoted Novartis Chief Executive Daniel Vasella as saying in an early edition of Monday's paper.

The director-general of the World Health Organisation, Margaret Chan, has called for drugs companies to show solidarity with poor countries as they develop vaccines against the pandemic H1N1 virus, commonly known as swine flu.

As well as Novartis, U.S. company Baxter International (BAX.N) and Europe's Sanofi-Aventis (SASY.PA), GlaxoSmithKline (GSK.L) and Solvay (SOLB.BR) are working on vaccines.

H1N1 has infected around 30,000 people globally, mostly in North America, though there have been few deaths outside Mexico and the United States. Europe suffered its first death on Sunday after a patient with pre-existing health problems died in Scotland. (Reporting by David Milliken; Editing Bernard Orr)

[marcovth]

Re: Novartis says won't give poor free H1N1 vaccines-FT

I would say, only donate to poor democratic countries which don't waste more than 2% BNP on weapons. If a country can buy weapons, then can buy vaccines as well.

[the doctor]

Re: Novartis says won't give poor free H1N1 vaccines-FT

This statement is truly horrendous. I understand the profit motive but this is beyond the pale.

This one statement provides validity to all the crazy statements made by the Indonesian Minister of Health. She was right all along and shame on us for her being so dogged in her demand that her people be given the same protection those in the developed world will receive from an efficacious vaccine.

There is a special place in Hell for people like Daniel Vasella, CEO of Novartis. This is the most immoral statement I have every heard anyone utter.

Grattan Woodson, MD

[The Mountains Voice]

Re: Novartis says won't give poor free H1N1 vaccines-FT

This statement is truly horrendous. I understand the profit motive but this is beyond the pale.

This one statement provides validity to all the crazy statements made by the Indonesian Minister of Health. She was right all along and shame on us for her being so dogged in her demand that her people be given the same protection those in the developed world will receive from an efficacious vaccine.

There is a special place in Hell for people like Daniel Vasella, CEO of Novartis. This is the most immoral statement I have every heard anyone utter.

Grattan Woodson, MD

I have mixed feelings about the statement. 1st of all - I'm one of the "nuts" that believes EVERYONE should have free healthcare coverage as part of gevernmental umbrellas.... so from that standpoint I do think it is despicable.

From a reality standpoint - well, they aren't even going to have enough vaccine for the people who line up waving money in their hands, and when you have so little vaccine - for so many people - it becomes a little more excusable to follow the procedure above. Now if there was plenty to go around I'd say that's is DEFINITELTY a different story.

But let's face it - drug companies could distribut LOTS of medication to people who need it - but they don't. The whole system is rather despicable actually.

As for the Indonesian Government - I've blamed them from as far back as late 2003 / early 2004, when they lied about poultry vaccines for H5N1, which allowed the H5N1 to become so established. But I've never blamed them for not trusting the WHO / CDC or Vaccine makers. They've done TONS of things wrong.... but mistrusting corporate greed & governmental protectionist practices isn't one of them.

[sharon sanders]

Re: Novartis says won't give poor free H1N1 vaccines-FT

All of the countries have done tons of things wrong, but we do not have the band width to get into that discussion.

[Shiloh]

Re: Novartis says won't give poor free H1N1 vaccines-FT

Source: http://www.ft.com/cms/s/0/875066ae-5...44feabdc0.html

Novartis rejects call for vaccine donations

By Andrew Jack in London

Published: June 14 2009 17:08 | Last updated: June 15 2009 03:41

Novartis, 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 unlike other drug companies, including GlaxoSmithKline, would not offer vaccines for free. He said: ?If you want to make production sustainable, you have to create financial incentives.?

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 ?solidarity? in offering vaccines to the poor.

The remarks highlight divisions in the industry. 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 their production for free distribution.

Mr Vasella said a ?significant? proportion of Novartis?s H1N1 stock had been reserved by governments, raising the prospect of shortages even among richer nations that can afford to purchase vaccines he estimated would cost $10-$15 (?6-?9) 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.

[hornblower]

Re: Novartis says won't give poor free H1N1 vaccines-FT

How is it that the other companies CAN afford to donate? (that was sarcasm)

http://www.bcbs.com/news/wellness/baxter-glaxo-to-donate-flu-vaccine.html

Baxter, Glaxo to donate flu vaccine

June 13, 2007

Page 6

Bloomberg News

GENEVA GlaxoSmithKline PLC will donate enough prepandemic influenza vaccine to the World Health Organization to inoculate 25 million people in poor countries, and Deerfield-based Baxter International Inc. said it also will donate vaccine.


The United Nations agency said on its Web site Wednesday that it will get 50 million doses to distribute in the event of a pandemic caused by the deadly H5N1 flu virus. WHO said Sanofi-Aventis SA and Hungary's Omnivest also might make some vaccine available. "Baxter intends on supporting this program through the WHO by providing a multiyear donation of its candidate pandemic influenza vaccine," the company said in a statement. "Donations to the program will help increase access to needed vaccines in the world's poorest countries in the event of a pandemic. Ensuring that H5N1 vaccines are rapidly and widely available in the event of a pandemic is one of the ways WHO is coordinating a global action plan for pandemic influenza."


In May WHO said it would set up a vaccine stockpile. London-based Glaxo and other drugmakers are trying to speed production to help governments prepare for a possible bird flu-spawned pandemic that health officials have said could kill millions of people.


The UN agency is also looking to develop public health guidelines, such as quarantines, to stop pandemics.


"This is another significant step toward creating a global resource to help the world and especially to help developing countries in case of a major outbreak of H5N1 avian influenza," said Dr. Margaret Chan, WHO's director-general.


"WHO welcomes this contribution from the vaccines industry and is also working with countries to develop capacity for the production of influenza vaccines," Chan said.


Sanofi said it was ready to supply "a significant number of doses" to WHO.


"Part of this supply could be made available immediately, in bulk form," the Paris-based company said.


Guidelines on where the WHO stockpile will be stored and how it will be used still must be developed, WHO said.

[the doctor]

Re: Novartis says won't give poor free H1N1 vaccines-FT

What is different now is that both Novartis and GSk are using cell based technology to produce flu vaccine. This is a big deal since they can produce it in just 13 weeks and this process is infinitely scalable meaning they can make 6 billion doses if needed.

All we need to blunt a pandemic is half that many. If you get half the population of the planet immune, this prevents the transmission rate of the virus to rise much above 1.

Right now it is much higher, possibly 2 but if it goes to 3, we are toast.

Producing influenza vaccine via cell culture is the holy grail Dr. Osterholm and others including me have called for. It is the answer if we can get an efficacious vaccine quick enough to protect enough people worldwide from the pandemic strain.

For lots of reasons, it will not be enough just to protect the 12.5% of those living in the richest nations. A pandemic that rages through the developing and underdeveloped world will have devastating affects on those in the privalaged nations even if not one of these people died of flu.

The world is an interdependent place in every respect. There is no going back. Those who think nationally in a time of great risk like the CEO of Novartis are tragically mistaken in their view.

What is needed now is for the wealthy nations to understand what I have said above and agree to underwrite the production of enough flu vaccine to halt this pandemic worldwide. A purchase on this scale should not be made at retail but at wholesale. It should not cost more than $20 billion US dollars, a small amount considering the alternative and something the rich nations can well afford. This is but a small fraction of the amount the rich nations have given their bankrupt financial institutions over the past year.

The drug companies will make a great profit from a sale of this size and if they wanted more, then **** them. They deserve to be nationalized at that point since an irresponsible action like that would be the like holding the world at gun point. How dare they!

GW

[Laidback Al]

Re: Novartis says won't give poor free H1N1 vaccines- Financial Times

Novartis is gambling with high stakes.
<o:p> </o:p>
If the R0, the CAR, or the CFR increases, the virus will simply sweep over the globe without regard to which countries can afford to pay for a vaccine or which can not. Failure to protect a substantial portion of the world?s population in order to flatten the infection curve could result in disruptions to our JIT worldwide economy that could last decades. What kind of revenue stream will Norvartis and other pharmaceutical companies have in such a future world. It would make more economic and business sense to lower profit expectation now, and gear up for a longer term income stream in the future. Short-sighted, near term, profit orientation can be hazardous to corporate health. Recent examples of the failure of corporations to focus on the larger, longer term, perspective are GM and Chrysler.
<o:p> </o:p>
In the case of Novartis and other pharmaceutical companies, it truly is a life or death situation.

[the doctor]

Re: Novartis says won't give poor free H1N1 vaccines- Financial Times

This is exactly the economic argument for why it is critical for the rich to ensure that those less well of are protected but there are other ones to.

For instance, the strain of a pandemic could trigger a regional nuclear war between two countries so armed in the Northern Hemisphere. Indian and Pakistan come to mind. A "small" exchange between these two is estimated to be about 30 megatons. The effect of this will be a fall in the average temp in the Northern Hemisphere of about 3 degrees C. That will cause crop failure for 2 to 3 years in the NH.

A country with a big and effective nuclear arsenal who were so threatened by pan flu that they were on the verge of collapsing might launch a preemptive EMP attack on potential economic and political rivals to prevent them from being able to take advantage of the chaos. Those most likely to be on the receiving end of an attack like this would be advanced nations.

The disruption of humanity and societies in the parts of the world not protected by the vaccine will be great if the pandemic is severe. Under these circumstance, the instability will spill over to the developed world in the form of mass illegal immigration, a dramatic increase in terrorism and a significant increase in the price of everything from food to toothpicks.

So much of what is consumed today in the rich nations is produced in the poor or developing ones. For instance 80% of US pharmaceuticals or the raw materials to produce them come from overseas. It will not be easy for Novartis or any other drug company to obtain alternative sources with the inevitable impact being a substantial rise in the cost of production and the price of drugs together with shortages or complete unavailability of others. The impact of this on a company like Novartis can not be calculated in prospect but I can say this with certainty, it will not be good and the losses cause by this dislocation will greatly exceed any profit they could make from flu vaccine.

However, if the greedy actions of this or any other drug company result in a preventable human catastrophe, something possible with a severe pandemic influenza, they will become the focus of revenge for many during the aftermath. I would venture to say that prosecutures and legislatures will take them to task for their actions as will many others on a more personal level. At the very least these companies will become pariahs to humankind worldwide and it is unlikely they will be permitted to remain in business under these conditions.

GW

[mixin]

Re: Novartis says won't give poor free H1N1 vaccines- Financial Times

I'm not a fan of drug companies or obscene profits; but do we really want to dictate that a private company must give away free product?

Maybe all the other countries can donate funds to purchase vaccine for them... if there is any. Or the wealthy can donate some of their vax.

To the remark about "free" healthcare for everyone: There is no such thing as free. Somebody will have pay for those who don't.

[marcovth]

Re: Novartis says won't give poor free H1N1 vaccines- Financial Times

I think rather than donating the end-product (the Vaccine), companies
could give the vaccine cell cultures to bioreactor labs in developing nations.

In the government biotech institute where I work, we have had plenty of
exchange people from Mexico, Brazil, India, South-Africa and other places
who got training and have set up bioreactor facilities in their own countries.

In emergency situations, this would be the easiest strategy.

[the doctor]

Re: Novartis says won't give poor free H1N1 vaccines- Financial Times

Drug companies making an efficacious vaccine for panflu should not be required to donate anything to anybody. Rather it is the responsibility of those of us in the developed world to use our enormous resources to fund the purchase of enough vaccine from these companies, under reasonable terms, to treat enough people the world over to blunt the transmission rate of the virus.

This means about 3 billion effective courses of vaccine, something that using cell-based technology, which is can be easily scaled up to this level is something that we can do.

How much would this cost the rich countries? Maybe $70 billion US dollars or about $78 per person living in the rich nations to protect all of them and half of those living in the undeveloped and developing world.

This is a small expenditure with so much to be gained by all especially those that enjoy their life within the developed world.

We can and should do this.

GW

[Laidback Al]

Re: Novartis says won't give poor free H1N1 vaccines- Financial Times

The doctor is right.

It is not just a humanitarian issue. It is an economic issue. What is the total world wide economic loss in trillions of dollars if we have a high fatality pandemic. In our current JIT interconnected world, the fatalities directly attributable to influenza may be small, but deaths due to disruptions of food, oil, raw goods, medicines, etc. could greatly exceed actual flu deaths.

Enlightened self interest by governmental and corporate decision-makers could make scaling up vaccine production and wide spread distribution a reality that could "blunt" this pandemic.

[The Mountains Voice]

Re: Novartis says won't give poor free H1N1 vaccines- Financial Times

.......but deaths due to disruptions of food, oil, raw goods, medicines, etc. could greatly exceed actual flu deaths.

In a severe pandemic, my money has always been on the above scenario. This "Global Society" is just too interconnected. And in many ways - too spoiled, too soft. You take away some of the basic niceties in the civilized nations, and your going to have chaos.