UPDATE:Conn. AG Probing Seasonal Flu Vaccine Price-Fix Claims

Date : 11/02/2009 @ 3:04PM
Source : Dow Jones News
Stock : GlaxoSmithKline PLC (ADS) (GSK)
Quote : 42.88  0.6 (1.42%) @ 8:00PM
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UPDATE:Conn. AG Probing Seasonal Flu Vaccine Price-Fix Claims

(Updates companies not immediately responding, Sanofi not immediately having a comment and Blumenthal's prior inquiry of Novartis.)

 
   By Chad Bray 
   Of DOW JONES NEWSWIRES 
 

NEW YORK -(Dow Jones)- Connecticut Attorney General Richard Blumenthal said Monday that he is probing allegations of price-fixing and preferential treatment in the distribution of the seasonal flu vaccine.

In a statement, Blumenthal said he sent letters to four manufacturers and nine distributors of flu vaccine, seeking information on the prices they're charging, on the rationale they are using to allocate supplies and on what steps can be taken to assure equitable distribution of limited vaccine supplies.

"I am asking vaccine makers and distributors to detail, prices, supply levels and distribution methods and criteria to guard against favoritism and gouging," Blumenthal said. "I will fight to assure no one makes a killing off the seasonal flu vaccine shortage - potentially endangering seniors and the sick - and everyone who needs a shot gets one."

Blumenthal said his office has received complaints of seasonal flu vaccines being offered at many times the normal price, as much as $100 a dose or higher and preferential treatment in distribution to large retailers.

His office also has received complaints that distributors and manufacturers are reneging on price agreements by demanding new, higher prices for already-ordered doses, and distributors are buying back vaccine for resale at inflated prices, Blumenthal said.

The manufacturers include units of GlaxoSmithKline PLC (GSK), Sanofi-Aventis SA (SNY), AstraZeneca PLC (AZN) and CSL Ltd. (CSL.AU).

Spokespersons for GlaxoSmithKline, AstraZeneca's MedImmune and CSL didn't immediately return phone calls seeking comment Monday. A Sanofi spokesman didn't immediately have a comment when reached Monday.

Last month, Blumenthal asked Novartis AG (NVS) for information about the supply of seasonal flu vaccine it expected to make available to the Visiting Nurse Association, which represents nurse groups around the country that provide home health-care.

In his announcement Monday, Blumenthal said Novartis has agreed to supply several Connecticut Visiting Nurse Associations with their full vaccine supply as well as to double its doses to national associations.

- By Chad Bray, Dow Jones Newswires; 212-227-2017; chad.bray@dowjones.com

 
 

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