Novartis nets bird flu vaccine deal

January 17, 2009

http://www.newsobserver.com/business/story/1369443.htmlNovartis nets bird flu vaccine dealContract worth $486 million puts production at Holly Springs plantALAN M. WOLF, Staff WriterSwiss drug company Novartis won a $486 million, eight-year contract from the U.S. government to produce a stockpile of bird flu vaccine at its factory under construction in Holly Springs.The plant is scheduled to open in 2012 and eventually employ more than 300 people.Under the contract with the U.S. Department of Health and Human Services announced Thursday morning, the plant will use new technology to produce an annual allotment of bird flu vaccine and seasonal flu vaccine. It also will be able to produce 150 million doses of bird flu vaccine within six months of the declaration of an avian flu pandemic -- enough to protect nearly half of the country's population."We believe that this contract award underscores the U.S. government's commitment to ensure pandemic vaccine supply, and reflects their confidence in Novartis," Joerg Reinhardt, chief operating officer of Novartis, said in a prepared statement.Novartis announced in July 2006 that it would build the flu plant in Holly Springs, providing an economic boost to the fast-growing Wake County town. State and local officials promised the company up to $41 million in incentives and tax breaks.Last fall, unfounded rumors swirled that the company had stopped construction. The contract reinforces the company's commitment, Mayor Dick Sears said."This is not only incredibly good news for Novartis, but it's great news for Holly Springs," Sears said. "It puts Holly Springs on the map in many ways."Since the Novartis plant was announced, developers have unveiled plans for three shopping centers, including one anchored by a Super Wal-Mart, and a four-story hotel."I'm not sure all this would have happened quite as quickly and easily if we didn't have Novartis in the background," Sears said.In addition to state and local incentives, Novartis received nearly $300 million in Health and Human Services grants to build the plant and develop the flu vaccines.Novartis will grow the vaccines in cells, rather than eggs -- the current method. The new process produces the shots more quickly and safely, the company says.Under the eight-year contract announced Thursday, Health and Human Services has the right to extend it over 17 years. =====In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.