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REMARKS BY:

Tommy G. Thompson, Secretary of Health and Human Services

PLACE:

Hubert H. Humphrey Building

DATE:

October 19, 2004

Flu Vaccines and Antivirals

Thank you all for coming. I'm delighted to be joined by a number of senior government officials, including the Deputy Attorney General, the Deputy Secretary of Veterans Affairs, the Deputy Secretary of Homeland Security, and the heads of several HHS agencies. They are an important members of our federal team who have been working tirelessly on flu-related issues this year, and who are part of a task force we are formalizing to continue our coordination on an ongoing basis.

From the moment we learned about the loss of the Chiron vaccine, we have responded swiftly to prioritize vaccine supplies, redirect distribution to people and places that need it most, and work to expand our stockpiles of vaccine and antiviral medicines. In fact, we have been planning for an event such as this literally since we walked through the doors of HHS.

We knew that our flu vaccine manufacturing marketplace had withered from neglect for much of the 90s, and we began taking aggressive steps to reverse that environment as well as prepare for challenges such as the one we face this year with a vaccine shortage. But I will get more into the cause of this problem and our record of achievement in a moment.

First, I want to address some of the important steps we are taking to deal immediately with impact of the flu vaccine shortage. We understand the public's concern about the loss of the Chiron flu vaccine supply. Removing this vaccine was a necessary step that helped keep contaminated vaccine out of the arms of Americans.

But we want the public to know that we do have the ability to deal with the coming flu season and help protect people from the complications of this illness - particularly for those who are most vulnerable.

We have healthy supplies of antiviral medicines and vaccines to help keep you safe from the flu and any complications. While we don't have as much flu vaccine as we planned for, the combination of the existing 60 million doses of vaccine and antiviral medicines gives us the ability to stave off the harsh effects of the flu this coming season.

In addition, federal health officials continue to encourage seniors to get the pneumococcal vaccine, which will help prevent a major complication of the flu - pneumonia.

We want to underscore our supplies of medicines and vaccines so that people can keep the coming flu season in a healthy perspective. We need to take a deep breath. We've successfully worked through vaccine supply problems in the past, and we are doing so this time.

In particular, we don't want seniors standing in long lines waiting for the vaccine. This is unnecessary and may pose even greater health risks for some seniors than the flu.

We are still in the early stages of the flu season, and millions more doses of vaccine will be shipped in the coming weeks. So there is still time to get vaccinated. Let me update you on our supply.

We expect to have 60 million doses of flu vaccine and FluMist nasal spray for the coming season - that's just slightly below the 62 million doses that were distributed just six years ago in 1998.

The 60 million doses includes 58 million from Aventis - including an additional 2.6 million doses the company told me today that it would make available in January. Then there are 2 million doses of Flu Mist. And, as you know, we continue to explore every option to obtain more vaccine from other sources.

About half of the existing supply has already been distributed�and the CDC and Aventis are working on distributing another 24 million doses. So more vaccine is on its way to communities.

As the CDC advises, be patient and persistent.

We want to make sure that the flu vaccine goes to those who need it most - including our seniors age 65 and older, young children age 6 months to 23 months, pregnant women, and persons age 2 to 64 with chronic conditions. Please, if you are not in a priority category - do not get the shot.

I want to thank those Americans who are helping out in the best traditions of this nation by forgoing their vaccines and leaving it for people who need it most.

Again, in addition to our vaccine supply, we have an ample supply of antiviral medicines to prevent and treat the flu. These medicines can help keep you safe from flu's complications.

CDC today is issuing interim guidelines on the use of Tamiflu, Rimantadine, Amantadine and Zanamavir for the prevention and treatment of flu.

And, for the first time, our Department has purchased and stockpiled antiviral medicines for more than 7 million people. This includes enough Tamiflu for 2.3 million people and enough Rimantadine for 4.25 million adults and 750,000 children.

There are also supplies of these antivirals in the private marketplace. And some manufacturers have indicated the ability to ramp up production of their antiviral medicines during the heart of flu season - we are continuing to work with them on the potential of these capabilities.

And again, the pneumococcal vaccine can protect against one of the worst complications from the flu - pneumonia. Our experts encourage seniors, and other vulnerable individuals, to pursue this vaccination as well.

So we have good reason to be optimistic in our ability to deal with this flu season and protect the most vulnerable for its harsh effects.

As I mentioned at the beginning when I introduced our friends and colleagues on stage, we are also formalizing a federal task force on the flu. This will enhance our ongoing coordination of flu-related matters, not only within our department, but with our federal partners in health care, law enforcement, consumer protection and health security. We're making sure that all aspects of flu season are being addressed for the American public during the coming months.

Importantly, the task force will also build upon our ongoing partnerships with the private sector as we go through flu season, including the public health community, physicians, state and local government, law enforcement, trade associations and advocacy groups.

So as you can see, from the outset of this challenge earlier this month, we're waging a comprehensive and aggressive response to this flu season.

Now, I want to take a few moments to outline why we are in this predicament and how far this administration has taken us in transforming the flu vaccine marketplace. No President or administration has investment more in the flu than this one.

The fact is that the flu vaccine marketplace has been withering for years, through most of the 1990s. Ten years ago, in 1994, we had five manufacturers of injectible flu vaccine; today we have two.

There are many reasons for the souring of the marketplace, including: high risks associated with a complex production process; unpredictable consumer demand that often leaves manufacturers with millions of surplus doses; and low-profit margins; and costly liability lawsuits.

And getting manufacturers back into the field is further complicated by the fact it can take five years or more to get a new facility into operation.

We went to work immediately to reverse this environment and create a marketplace that would attract more manufacturers as well as make vaccine manufacturing more efficient and cost-effective. We are transforming the flu vaccine marketplace for the 21st century and preparing for new flu threats.

President Bush has investment more in research, development and acquisition of flu vaccines and medicines than any president in our nation's history. The President's investment in flu-related activities increased 720 percent - from $39.3 million in 2001 to $283.1 million in FY05.

We're investing in new technologies. In each of the past two budgets, HHS has asked for $100 million to shift vaccine development from the cumbersome egg-based production to new cell-culture technologies, as well as for year-round egg development for egg-based vaccines. We only received $50 million of our request last year, and we need Congress to fully fund our request this year.

We created the nation's first stockpiles of medicines. I spoke earlier of the stockpiles of Tamiflu and Rimantadine. But we also invested $40 million in 2004 and are seeking another $40 million in FY2005 to create stockpiles of flu vaccine through the Vaccines for Children Program.

These stockpiles give us a new ability to protect the most vulnerable.

We're preparing for the new flu threats - namely pandemic flu and avian flu. In fact, one of the very first working groups I created upon coming to HHS was on the pandemic flu.

And in August, I was proud that our department produced a Pandemic Influenza Response and Preparedness Plan - something the previous administration failed to accomplish.

And in May, I called together a summit of my health counterparts throughout the world to begin worldwide planning for a pandemic flu. We are continuing to work together in coordinating our planning for such an event.

We're also researching potential vaccines for the avian flu if it should be transferred to humans and spread among people. And we're creating partnerships with the private sector to be able to produce vaccine for an avian flu.

So the record is clear. We are taking bold, aggressive steps to improve the availability and reliability of flu vaccine. Unfortunately, it takes time.

Yes, we are disappointed that we lost the Chiron flu vaccine. But we had contingency plans ready. We're now implementing those plans. We have the combination of medicines and vaccines to help protect the public during flu season, particularly those who are most vulnerable.

We ask for the public's patience, persistence, and partnership as we work through this challenge together.

Thank you. I will be happy to take any questions now.

Last Revised: October 20, 2004

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