UK: Smallpox Vax - Labour claims unravel over vaccine deal

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Labour claims unravel over vaccine deal

By Francis Elliott, Deputy Political Editor

(Filed: 14/04/2002)

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2002/04/14/npox14.xml & s

Sheet=/portal/2002/04/14/ixport.html

THE scandal surrounding the award of a £32 million smallpox vaccine contract

to a Labour Party donor grew last night after the Government's attempt to

justify the deal was flatly contradicted by Britain's leading virologist.

Professor Oxford, a world renowned expert on vaccine science, told The

Telegraph that there was " no medical reason " why the vaccine made by the

donor's company had been chosen over rival products.

He spoke out amid arguments over the handing of the contract to PowderJect

Pharmaceuticals, whose owner gave £50,000 to Labour nine months ago.

Rival companies protested that they had not been given a fair chance to bid

in the secretive deal, which will provide vaccines to protect Britons in the

event of germ warfare.

Drayson, the chief executive of PowderJect and a former Conservative

Party supporter, gave the money to Labour last July, making him the biggest

donor to the party since the election. It was his first gift to Labour.

In an attempt to halt the controversy yesterday, Hutton, the health

minister, claimed that the contract had gone to PowderJect because it was

the only company which was able to supply a particular strain of the

vaccine, the Lister strain.

Mr Hutton, rejecting calls for an independent investigation, said: " The

contract was awarded to PowderJect for one reason and one reason alone. They

were the only company that were able to supply the vaccine that we required

as soon as possible.

" We have taken advice right across government about the suitability of this

particular strain and we are absolutely sure this is the right strain for us

to use. "

Mr Hutton's assertions were promptly countered by rival companies which said

that they could have supplied equally effective protection.

The most damaging, and independent, contradiction, however, came from

Professor Oxford, of St Bartholomew's and the Royal London School of

Medicine. He said: " I would have thought there is no medical reason for

this.

" The Lister strain is the classic strain that has always been used in this

country but it is only one of a number that were used in the global

eradication programmes in the 1970s.

About £20 million of the £32 million contract will go to PowderJect. The

rest will go to a Danish company with which it is working. City analysts

believe that the contract could net PowderJect £10 million in profit, a 50

per cent margin.

Officials close to ministers yesterday claimed privately that the Lister

strain made by PowderJect was selected on the advice of military

intelligence, suggesting that it would counter a specific terrorist threat.

However, the US government which is also stocking up on smallpox vaccines to

guard against an attack, is using a different strain which is made by

another British company, Acambis Plc.

Tim , the shadow cabinet office minister, called for an independent

investigation into the way the contract was awarded. He said: " There are

some very serious questions about how the process has been conducted. "

The Telegraph has learned that Mr Blair ordered emergency stockpiling of

vaccine after he was warned by Washington that an attack on Iraq could

result in biological weapons being used against Britain.

Dr Brown, the chief executive of Acambis, angrily questioned why his

company was denied a chance to supply the British Government.

He said: " At the moment we are producing for the US government. It would be

highly unlikely that anyone is going to be able to get a fully-tested

vaccine available before us. "

Dr Brown also said that his product was being tested by medicines safety

officials in the United States and that it was expected to win approval next

year from the food and drugs administration, the world's most rigorous

licencing authority.

By contrast, a spokesman for PowderJect conceded that its product would not

be licensed by the UK Medicines Control Agency.

Dr Drayson, 41, co-founded PowderJect Pharmaceuticals in 1993. He has become

a staunch New Labour supporter.

When the Prime Minister was under fire for refusing to reveal whether his

son, Leo, had had the MMR vaccine, Dr Drayson dismissed the criticism as

" unfair " .

He was also one of six industrialists who signed a letter to the Financial

Times before the last election, endorsing the Goverment's record on

promoting business.

In addition to the smallpox deal, his firm has a £17 million government

contract to supply anti-TB vaccines to schools.

The Department of Health, however, is understood to be looking for

alternative suppliers after PowderJect increased the price four-fold.

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Sheri Nakken, R.N., MA

Vaccination Information & Choice Network, Nevada City CA & Wales UK

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