Roche to build U.S. plant, hike Tamiflu output

updated 8:30 p.m. ET Oct. 18, 2005

SAN FRANCISCO - Roche AG says it will build a U.S. plant to make more of its anti-bird flu drug Tamiflu, but that promise failed to tamp growing international pressure on the Swiss drug giant to ease its monopoly grip on the drug.

European Union foreign ministers on Tuesday called bird flu a global threat following the discovery of new cases in Greece, Romania and Turkey in recent days, which led to bans on poultry from those countries.

Meanwhile, demand for Tamiflu is far outstripping Roche’s ability to make it.

Some 40 countries are scrambling to create Tamiflu stockpiles to treat millions if a pandemic occurs and there’s growing international pressure to ignore Roche’s patent rights and manufacturer inexpensive generic versions.

Thailand has announced its intentions to do just that and India-based Cipla Ltd. said it will be ready to ship generics next year, though it said Tuesday it will seek a license from Roche.

The World Health Organization recommends governments keep enough anti-viral drugs and regular human flu vaccines to inoculate at least 25 percent of their populations.

The demand for Tamiflu is expected to continue its dramatic rise after the European Union called on all its members Tuesday to stockpile Tamiflu.

As migrating wild fowl have spread bird flu from Asia to Europe, fears have intensified that the virus may mutate into one that can be easily transmitted among humans.

Global health experts fear bird flu, which has swept through poultry across Asia since 2003 and killed at least 63 people, could be the start of a worldwide epidemic.

While current flu vaccines offer no protection against bird flu, lab and animal experiments have shown Tamiflu appears effective against it, and doctors in Asia have already been using the drug to treat infected people. Tamiflu makes symptoms less severe and shortens the duration of the illness by two days.

Roche, the sole manufacturer of Tamiflu, has ruled out relinquishing its exclusive patent rights on the drug to ease the crunch. But for the first time, the company said Tuesday that it was seeking other companies to help speed up its production.

“We are prepared to discuss all available options, including granting sub-licenses, with any government or private company who approach us to manufacture Tamiflu or collaborate with us in its manufacturing,” said William M. Burns, chief executive of Roche’s pharmaceuticals division.

Until Tuesday, Roche had insisted it would not allow anyone else to make Tamiflu as sales of the once-obscure drug’s sales have skyrocketed from $76 million in 2001 to an estimated $700 million this year.

Roche’s willingness to begin negotiating with other companies did little, however, to bolster the company’s sagging public image and many critics remained skeptical of the company’s intentions.

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