April 23, 2008

Japan drugmakers to mass produce bird flu treatments in preparation for outbreaks   

Toyama Chemical Co. (4518.TO), Daiichi Sankyo Co. (4568.TO) and other domestic drugmakers are preparing to mass-produce treatments for new virulent strains of influenza as the government steps up efforts to better prepare the nation for a possible outbreak, The Nikkei reported in its Wednesday morning edition.

Toyama Chemical is to spend JPY 10 billion (US$97.03 million) to start building this year an influenza drug plant in the city of Toyama.

The Fujifilm Holdings Corp. (4901.TO) unit will produce a new drug that is currently undergoing domestic clinical trials as a treatment for conventional flu. With US laboratory testing results having shown the drug to be effective against the bird flu caused by the H5N1 virus, the company expects it to work against new strains as well. Once final tests are completed at the end of the year, Toyama Chemical will apply to the Health Ministry for approval.

Daiichi Sankyo and Shionogi & Co. (4507.TO) are each developing flu treatments and plan to move into the final trial stage at year' end. Both companies' offerings treat conventional flu strains, but apparently the drugs have proven effective against bird flu in animal testing.

Currently, two main influenza treatments are available in Japan: Tamiflu, made by Swiss drugmaker Roche Holding AG (RHHBY), and Relenza, by Britain' GlaxoSmithKline Plc (GSK). In preparation for a possible outbreak, the central and prefectural governments have stockpiled Tamiflu for 24 million people. Japan also has enough Relenza for 1.35 million people.

Yet it is still unknown how effective these drugs will be against new types of flu.

Once Toyama Chemical and others begin mass production, they will be able to provide emergency supplies if an outbreak actually occurs.

The ruling Liberal Democratic Party and the opposition Democratic Party of Japan have agreed to enact Friday revisions to two laws that are designed to handle outbreaks of new strains of influenza. The revisions will expand the stockpiles of treatments and vaccines. Such government policies have helped bolster drugmakers' efforts.