by Playfuls Staff |
21st December 2006
U.S. health officials canceled an $877.5 million contract to develop an anthrax vaccine, stalling the Bush [more] administration's program to counter bioterrorism.
Health officials canceled the contract with VaxGen because the company missed the deadline to begin testing on humans, The Washington Post said Wednesday.
The decision to end the contract with the California firm occurred on the same day President Bush signed legislation that attempted to salvage the $5.6 billion Project BioShield by reorganizing its management and pumping more money into firms doing its work.
"It's very disappointing that they took such aggressive and dramatic action without engaging in a discussion with us about potential ways for salvaging all the work that has gone into this program," said Lance Ignon, VaxGen's vice president of corporate affairs. The company spent more than $175 million of its own money on the project, which is its only current contract.
The cancellation means the government will continue to rely on anthrax vaccine made by Emergent BioSolutions of Gaithersburg, Md.
VaxGen was selected in 2004 even though it had never successfully produced a drug and was known for a failed attempt at an AIDS vaccine.
© 2006 UPI
