Fiscal year-end windfall blown on old vaccine

by Ann Rees

The [Vancouver, Canada] Province

June 26, 2000

Canada's military blew much of a $2-million windfall on old lots of anthrax vaccine which either expired before they could be used or were accidentally spoiled.

In November 1998 the medical wing of the Department of National Defence received unexpected approval to spend $2 million on anthrax vaccine.

"I can't believe what we had to go through to cut back and now they are giving us money we said we didn't need," says a Nov. 13, 1998 internal military memo to senior medical officers.

"Ain't life grand!!!!!!!"

But there was a catch.

The money had to be spent before the end of the fiscal year -- March 1999 -- or it would be reclaimed as unnecessary.

"We cannot go to bed with any money in our account so accepting the funds and not spending them will not be tolerated by Gen. Couture," said a Nov. 13, 1998 memo from Col. S. Hantiuk, obtained through Access to Information.

Canada was desperate for anthrax vaccine. DND's vaccination program was about to be halted because supplies had almost run out.

Soldiers would receive just three shots, rather than the full course of six which the U.S. Food and Drug Administration approved for adequate protection against an anthrax attack.

The only problem with spending the $2 million was no new vaccine was available.

The U.S. plant which had been producing it was so rundown it had stopped production.

A replacement facility was still under construction.

"New licensed stocks of vaccine are not now expected for at least a year," said an internal DND memo dated Jan. 27, 1999.

But DND was determined to spend the money before March. And that meant buying stock produced in the sub-standard old facility.

Medical officials made a deal with the manufacturer, BioPort Corp.,to buy thousands of doses of old stock -- some of which was due to expire within months.

Negotiations with BioPort Corp. were concluded in late March, just in time to beat the deadline.

Canada would receive 30,000 doses over six years at a premium price of $41.20 U.S. a dose (about $60 Cdn), about four times the previous price paid. The total cost of about $1.8 million was to be paid in full before the deadline.

The first of the three shipments arrived in April 1999. DND took delivery of 890 doses but was able to use only 40 because the rest were accidentally spoiled and had to be destroyed.

DND says an investigation is under way.

Only 60 doses from the second shipment of 3,000 doses was used before it reached its expiry date in May 2000, according to DND.

A third shipment of 7,000 doses will expire in April 2002.

Canada will get a supply produced in the new facility once it is licensed by the FDA said Dr. Robert Myers, chief operating officer of BioPort, the manufacturer.

Myers does not know when that will be.

Lt.-Col. Jean-Robert Bernier, assistant chief of staff operational medicine, says he has no doubt that the vaccines Canada has purchased are safe and effective.

"Here we have a vaccine that has been shown to be safe and effective and approved for use by one of the world's top regulatory agencies," he said. "All kinds of studies ... and there has been nothing that raises any doubt."