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Bush has 7b bird flu battle plan Original Source Link: (May no longer be active)
http://www.mercurynews.com/mld/mercurynews/news/13058940.htmhttp://www.mercurynews.com/mld/mercurynews/news/13058940.htm
Posted on Wed, Nov. 02, 2005
Bush outlines $7.1 billion bird-flu virus battle plan
By Steve Johnson
Mercury News
President Bush proposed a $7.1 billion plan Tuesday to protect the nation against a potential bird-flu pandemic.
Such funding for vaccines and anti-viral drugs could boost several Bay Area companies.
``It's really an encouraging step,'' said Dino Dina, chief executive of Dynavax Technologies of Berkeley, who hopes to get some of the money for a drug it is developing to increase the effectiveness of bird-flu vaccines.
More details on the government's preparedness plan for a pandemic, or worldwide epidemic, are expected to be unveiled today. But Bush made it clear in announcing his proposal during a speech at the National Institutes of Health that he considered bird flu a matter of urgent concern.
``If we wait for a pandemic to appear, it will be too late to prepare, and one day many lives could be needlessly lost because we failed to act today,'' he said.
The virus has spread among birds, primarily in Asia but with more recent outbreaks in Eastern Europe. So far it has also killed 62 people, all in Asia and presumed to have had direct contact with birds. But experts fear the virus could mutate into a form that could spread among people and kill millions more.
On Tuesday, Canadian authorities reported finding it in wild birds in British Columbia, a day after nearly three dozen birds were found to have the virus in Quebec and Manitoba. But it's unclear if the strain found in Canada is the one linked to human deaths.
Most of Bush's plan, which requires Congressional approval, would involve stockpiling and developing drugs to counter bird flu.
Bush proposed allocating $1.519 billion to buy vaccines, to keep people from becoming infected, and $1.029 billion for anti-viral drugs, to minimize the illness once someone is exposed to the virus. An additional $3.6 billion would be used to develop new vaccines or other treatments, as well as a new method to make vaccines using cell cultures instead of the less reliable method of making it from chicken eggs.
The rest of the money would help government agencies monitor and prepare for a possible bird-flu outbreak. Bush's plan would also make drug or vaccine companies less vulnerable to lawsuits over safety or side effects.
Federal officials haven't spelled out who would get the money. ``Those are all issues that are in the process of being determined,'' said White House spokesman Ken Lisaius.
Nonetheless, Chiron of Emeryville and Gilead Sciences of Foster City, which both have track records in this field, are likely candidates.
Despite contamination problems at two of Chiron's winter flu-vaccine plants in Europe this past year, the government considers the company a key player in the battle against bird flu.
Chiron has developed vaccines for two of the bird-flu strains -- including H5N1, the most virulent form -- and just last week won a $62.5 million federal contract to begin manufacturing a vaccine. Chiron and federal officials also announced last week that another Chiron product appears to significantly increase the effectiveness of the vaccines.
Gilead developed the anti-viral drug Tamiflu, which was singled out for mention in Bush's announcement, along with Relenza, made by GlaxoSmithKline of England. Under a licensing deal, Tamiflu is manufactured by Roche while Gilead receives royalties, typically 10 percent. Assuming the $1.029 billion Bush has allocated for anti-viral drugs is split evenly among Tamiflu and Relenza, Gilead's share would likely be about $50 million.
Other local companies could benefit, too. After hearing about Bush's plan, executives at Juvaris BioTherapeutics of Pleasanton immediately began discussing how to apply for some of the money for a bird-flu vaccine they are developing.
``We intend to absolutely find that out and pursue it,'' said Martin Cleary, chief executive at Juvaris.
It's unclear which vaccines or anti-viral drugs may prove most effective against bird flu, if the virus becomes transmissible by humans.
``You might see -- for lack of a better word -- money being thrown around for different therapies,'' said Ren Benjamin, an analyst with Rodman and Renshaw. ``There could be a number of winners.''
Not everyone is happy about Bush's plan. Vera Hassner Sharav, president of the non-profit Alliance for Human Research Protection in New York, contends fears about bird flu are exaggerated and considers Bush's plan a waste of money.
``What we're having here is essentially a transfer of wealth from the taxpayer to the pharmaceutical industry,'' she said.
But Cornelia Dekker, who directs a Stanford vaccine program and is on the federal government's National Vaccine Advisory Committee, said there is cause for worry.
Although it's hard to know if the bird flu will develop into a pandemic, ``there are worrisome signs,'' she said. ``This is something to take seriously.''
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Contact Steve Johnson at sjohnson@mercurynews.com or (408) 920-5043.
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