Two recent stories highlighting the vast amounts of money which will be made by pharmaceutical corporations exploiting the unwarranted hysteria over swine flu.
The Financial Times: Drug groups to reap swine-flu billions
Some of the world’s leading pharmaceutical companies are reaping billions of dollars in extra revenue amid global concern about the spread of swine flu. Analysts expect to see a boost in sales from GlaxoSmithKline, Roche and Sanofi-Aventis when the companies report first-half earnings lifted by government contracts for flu vaccines and antiviral medicines.
The fresh sales – on top of strong results from Novartis of Switzerland and Baxter of the US, which both also produce vaccines – come as the latest tallies show that more than 740 people have died from the H1N1 virus, and millions have been affected around the world. GlaxoSmithKline of the UK confirmed it had sold 150m doses of a pandemic flu vaccine – equivalent to its normal sales of seasonal flu vaccine – to countries including the UK, the US, France and Belgium, and was gearing up to boost production.
GSK also produces Relenza, an antiviral medicine that reduces the length and severity of the infection, and is preparing to increase manufacturing towards 60m annual doses. The UK placed an order for 10m treatments this year. One beneficiary of the fears about the pandemic has been Roche of Switzerland, which sells Tamiflu, the leading antiviral drug, and has seen a sharp rise in orders from private companies as well as governments.
A report last week from JPMorgan, the investment bank, estimated that governments had ordered nearly 600m doses of pandemic vaccine and adjuvant – a chemical that boosts its efficacy – worth $4.3bn (€3bn, £2.6bn) in sales, and there was potential for 342m more doses worth $2.6bn. It forecast that fresh antiviral sales could boost sales for GSK and Roche by another $1.8bn in the developed world, and potentially up to $1.2bn from the developing world.
But there were also uncertainties for the pharmaceutical manufacturers. With demand likely to outstrip supply, and initial production suggesting that the yield for the pandemic vaccine is relatively low, they may face difficult choices in determining how much to supply to the countries seeking orders. They are also under pressure to provide more drugs and vaccines for free, or extremely cheaply, to the developing world.
The Guardian: Drugs giant GlaxoSmithKline predicts swine flu gold rush
Britain’s biggest pharmaceutical company is preparing to sell £3bn worth of swine flu drugs this year, it emerged today. GlaxoSmithKline revealed its vaccine, one of the world’s first, could be available by September after the UK government placed advance orders for 60m doses. It also disclosed that international governments were stockpiling large supplies of GSK’s anti-viral treatment Relenza, which can relieve swine flu symptoms.
Worldwide sales from the two drugs are expected to reach £3bn by January, but the company rejected claims it was exploiting the pandemic – stressing that profits would be much lower once development costs were taken into account. It also said poorer nations would receive the vaccine for free with 50m doses to be donated to the World Health Organisation. More could follow, depending on demand.
The chief executive, Andrew Witty, said the company had been preparing for a pandemic for the last three-and-a-half years and had spent more than £1bn to ensure its factories could crank up production at short notice. “We don’t know how big this deal is going to be, but no-one can say we aren’t ready,” said Witty. “We are working flat out with governments around the world to come up with a solution.”
GlaxoSmithKline has also developed an anti-viral face mask, which is expected to be used by people such as “front line health workers.” Swine flu is thought to have led to the deaths of 31 people in Britain so far and further details of its rapid spread are due to be released by the NHS tomorrow. The world’s first human trials of a swine flu vaccine have begun in Australia, drug company officials said, as the global death toll from the virus rose to 700. Two biotechnology companies have started injecting adult volunteers in the southern city of Adelaide.
In a sign of how quickly GSK is working to make sure a vaccine is available from September, the company said that “clinical trials will be limited, due to the need to provide the vaccine to governments as quickly as possible. Additional studies will therefore be required and conducted after the vaccine is made available.”
