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    China Business
     Nov 11, 2005
Scramble for Tamiflu, scientists work on vaccine

BEIJING - As worries about bird flu increased, China quickened the pace of its efforts to secure supplies of the antiviral drug Tamiflu, and an Australian scientist speculated that a vaccine might be available soon.

Scientist sees vaccine
In Sydney, Australian Nobel laureate Peter Doherty said that a vaccine to combat the deadly bird flu may be developed fairly soon, but warned that no one should underestimate the danger the disease presents. China is investigating whether three people, including a dead 12-year-old girl in Hunan province, were the nation's first known human cases of bird flu, which has killed more than 60 people elsewhere in Asia since 2003.

CSL, a Melbourne-headquartered global company, is trying to develop a vaccine to combat the bird flu virus. Professor Doherty, who won the Nobel Prize for his work in immunology in 1996, said



that once a vaccine was developed, it would only take three to four months to manufacture enough to vaccinate the majority of Australians. "It's possible that in the not-too-distant future that we could actually get a vaccine out there," he said during an address to the Lowy Institute in Sydney.

The antiviral drug Tamiflu would help protect people from any type of flu to a certain extent, he said. But Australia did not have sufficient stockpiles of the treatment to cater for everyone. "It should work if we get the infection in the individual very early," Doherty said. But he added that if the infection had already taken hold in a patient, then Tamiflu and other antiviral drugs would be ineffective.

Doherty said the problems related to fighting a potential outbreak of bird flu in humans were both strategic and economic. "How much do you spend on a potential threat? It is tremendously difficult to play this game with this virus because you have no idea how it will manifest ... and then there is the possibility it won't happen at all." Doherty, who works at the St Jude Children's Research Hospital in the United States, said a well-organized global influenza network had been operating since the end of World War II.

But up to 40,000 Americans still died from the common flu each year. "The problem with influenza is it is an extremely infectious virus. Unlike SARS, people are infectious before they develop symptoms," he said. The Spanish flu, which started as an avian flu before mutating to a human flu, killed about 40 million worldwide at the end of World War I.

Doherty was awarded his Nobel Prize for making one of the most profound discoveries of the past 50 years in the burgeoning field of immunology - a demonstration that the cell-based immune response requires simultaneous recognition of self-antigens and foreign antigens. His research introduced a clearer understanding of the intricate mechanisms of the immune system, and its implications extended to the treatment of many infectious diseases.

Chinese institute set to produce Tamiflu
Meanwhile, a leading Chinese life sciences institute affiliated with the Chinese Academy of Sciences declared that it could produce Tamiflu if the bird flu turned into an epidemic. "If the epidemic spreads, we will produce our own version of Tamiflu," Wu Jiarui, vice-president of the Shanghai Institute of Biological Sciences, said November 8. Swiss-based Roche Holding AG holds the sole patent for Tamiflu, but under Chinese law, this could be sidestepped in the event of a public health crisis. Scientists say it will be straightforward to produce Tamiflu if the proper materials are available, although the process is complicated. Wu said that the institute has the right materials available.

The primary goal will be to try to produce shikimic acid, the active ingredient in Tamiflu, which is derived from star anise, a spice widely produced and used in China. Wu said the acid is also found in other plants used in traditional Chinese medicine herbs. Meanwhile, Shanghai Pharmaceutical Group Co Ltd said it expected a "very positive response" from Roche on its application to produce Tamiflu, which it submitted recently (see below). Huang Yanzheng, vice-president of SPG and board chairman of Shanghai Roche, a joint venture between Roche and SPG, said it would take about six months for SPG to mass-produce Tamiflu once Roche gives the go-ahead.

With public anxiety about bird flu growing in the country, all segments of the poultry industry have been hit hard. Prices for chicks have plummeted 90% in some areas, from 2 yuan (US$0.25) to 0.2 yuan, the Information Center of the China Feed Association said. Supermarkets have cut down purchases of dressed chickens and ducks because of sluggish sales. Wumart, a Beijing-based chain supermarket, said it had cut purchases by half in the past two weeks.

Shandong Liuhe Group, one of the country's leading suppliers of live fowl and poultry feed, said it suffered a loss of 4 million yuan (US$494,639) last month alone. The group's vice-chairman, surnamed Zhang, said the company has been forced to adopt a "zero profit" strategy this month in the live-fowl business. Sales of poultry feed dropped by 10% last month and may see a 20-30% drop in the next few months, he added.

The price of soybeans, an ingredient in bird feed, also declined. Soybean prices at the Dalian Commodity Exchange dropped 2% yesterday, Bloomberg reported, adding that the sluggish business has exerted its influence on American market. It said soybean prices in Chicago had their biggest two-session drop in two months on speculation that demand from China, the biggest importer of the oilseed, will drop as the country culls millions of birds. Soybeans for January delivery dropped 9 cents, or 1.5%, to $5.83 a bushel on the Chicago Board of Trade, bringing the two-session decline to 3.1%, the most since August 25.

Meanwhile, the Ministry of Agriculture told farmers November 8 to buy poultry vaccines only from nine designated drug makers after a counterfeit bird flu vaccine was found in northeast China. The ministry revealed that a bogus bird flu vaccine produced by a biotech pharmaceutical company in North China's Inner Mongolia Autonomous Region had been sold in Liaoning province, where the latest bird flu outbreak occurred. "The harm [fake vaccines can do] is incalculable," said Jia Youling, director of the Veterinary Bureau of the Ministry of Agriculture.

If they contain active viruses, they could spread and possibly harm both poultry and humans, he warned. In addition, even if counterfeit vaccines contained harmless ingredients, they could increase the danger of an epidemic by causing farmers to believe their flocks had been immunized when they actually had not.

Shanghai group trying to license Tamiflu
Roche is now assessing an application sent by a Shanghai pharmaceutical company, Shanghai Pharmaceutical Group (SPG) to produce Tamiflu under license. If approved, SPG would become the first Chinese company to produce Tamiflu, which according to tests is effective against bird flu in humans.

"We made the application in view of the growing demand for the drug and its high price," said Huang Yanzheng, vice-president of SPG. Developed by Hoffmann-La Roche Inc and Gilead Sciences, Tamiflu received government approval in October 1999. In pill or liquid form, the drug is now available in about 80 countries around the world.

But given the worldwide shortage of the medication, the Swiss drug-maker was criticized because it would not give up its patent, which is reportedly protected until 2016, and only recently voiced willingness to work with others to produce it. Currently, all the Tamiflu available in China is imported through Shanghai Roche Pharmaceutical Ltd. Priced at 298 yuan ($37) per 10 granules, the drug is now being purchased only through the government, an indicator of stringent supply.

Domestically produced Tamiflu could be, in theory, as much as 30% cheaper than imports, said Zhou Qianjun, a doctor with Shanghai No 1 People's Hospital. "Yet domestic consumers might not benefit from the cost savings, as there is the possibility that SPG will monopolize the business," Zhou added.

Roche headquarters will carry out an intensive evaluation of SGP's capabilities, including its raw materials, facilities and processes, Xu Chao, corporate communications manager of Roche's Shanghai office, said after the application was made. Huang said SGP is gearing up for the coming evaluation. Declining to reveal more details, he said: "I will be able to provide better answers in two to three weeks."

The application came after a verbal exchange between the top management of the two companies when Roche's chairman and chief executive officer Franz Humer paid a visit to Shanghai last week. Humer revealed during his trip that Roche was in talks with a number of Chinese authorities about jointly producing Tamiflu to boost its global production, amid fears supplies will fall short of what will be needed in the event of a flu pandemic. The company itself expects to increase production tenfold by mid-2006, according to Roche's Shanghai office.

China reported 50 bird flu outbreaks last year, but no humans were infected by the virus, authorities said. Since autumn this year, the H5N1 bird flu strain has been reported in Central China's Hunan province, east China's Anhui province and the Inner Mongolia Autonomous Region.

In another development, China and the United States pledged to step up technological cooperation and information exchange in the fight against bird flu at a recent seminar in Beijing. The two countries agreed to enhance their coordination and understanding in adopting international standards to properly resolve quarantine issues to facilitate the trade of poultry products.

At the same time they should endeavor to ensure their quality and safety, according to a statement from the gathering, which was attended by officials from the General Administration of Quality Supervision, Inspection and Quarantine of China and the US Department of Agriculture.

(Asia Pulse/XIC)


US lends a helping hand (Nov 10, '05)

Beijing, Taipei tighten countermeasures (Nov 10, '05)

Factory fowl no answer to bird flu (Nov 5, '05)

Bird flu fearsome but fickle (Nov 3, '05)

Taiwan gearing up to produce Tamiflu (Oct 29, '05)

 
 



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