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Week of 7.2.08

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Flash Report

Dozens of Companies Vying for Bits of Bird Flu Market
Malorye A. Branca, editor-in-chief of PharmaWeek, and Lucy Sannes, Ph.D., 
President, Sannes and Associates

When President Bush announced a multi-billion-dollar bird-flu epidemic preparedness plan about a month ago, companies were already scrambling to offer up related diagnostics, therapeutics, and vaccines.  More than 60 such products are in development or are now available. (See Tables 1, 2, and 3, below for specific products.)  At least 30 companies are working in this field.

Unquestionably, there is money to be had from the many agencies now mobilizing against a threat the World Health Organization (WHO)'s director-general has deemed inevitable:   "It is only a matter of time before an avian flu virus -- most likely H5N1 -- acquires the ability to be transmitted from human to human, sparking the outbreak of human pandemic influenza," Lee Jong-wook, said in early November, according to CNN.

Most needed are rapid diagnostics to help detect the disease, as well as better new treatments and protective vaccines. Although many nations are stockpiling Roche's Tamiflu, a Vietnamese doctor with first-hand experience recently said that drug is "useless" against avian flu. Officials dispute that claim, but there is clearly demand for new treatments.

Bird flu entails high risk for companies, however, because it is not certain this will ever become a real market. Fears of a worldwide SARS (Severe Acute Respiratory Syndrome) epidemic, for example, proved unfounded, leaving businesses with no rewards. Vaccines are generally considered a bad bet anyway because they are such low-margin products and are very litigation prone.

As a result, companies are still looking for the government, and the public in some cases, to share more of the risk related to these endeavors. In the U.S., the proposed Biomedical Advanced Research and Development Agency (BARDA) would be exempt from the open records and meetings laws that most government departments must obey. The goal is for the government to act as a partner and provide sufficient safeguards and incentives to keep the private sector interested. 

If the epidemic does materialize, much more than merely the proper medical tools will be required to combat high numbers of avian flu cases.  And at this point, it appears even the U.S. is ill-prepared to address this threat. In a recent report from the nonprofit organization Trust for America's Health, the U.S. government received a "D+ for post-9/11 public health emergency preparedness," while more than half of U.S. states received 5 or less out of 10 possible points for "key indicators of health emergency preparedness." The group based their assessment in part on a survey of public health experts and available data.

 References:

"An Agency, Quietly, Would Spur Vaccines," Boston.com, Dec. 4, 2005. 

"Bird Flu Hype Infecting Biotech Industry," Chron.com (AP), Dec. 5, 2005.

"Bush Announces Plan to Prepare for Flu Epidemic," NYTimes.com, Nov.1, 2005.

"Doctor Says Bird Flu Drug is 'Useless'," Timesonline.com, Dec. 4, 2005.

"Questions and Answers:  H5N1 Avian Flu Vaccine Trials," NIAID.gov

"Ready or Not," Healthyamericans.org, Dec. 6, 2005.

"WHO: Human Flu Pandemic Inevitable," CNN.com, Nov. 14, 2005.

 

 

Source: Sannes and Associates

 

 

Genstruct: Patience, Persistence, and Payoff 
By John Russell

Finding the right business model for systems biology (SB) technology providers has been challenging — that’s hardly a new theme in biotech.

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