U.S. Trims H1N1 Vaccine Order From CSL as Global Interest Wanes

Jan. 11 (Bloomberg) -- The U.S. government wants less than half the swine flu vaccine it originally sought from CSL Ltd., joining countries such as France and Germany in canceling orders amid waning public concern about the influenza pandemic.

The Department of Health and Human Services told Melbourne- based CSL on Dec. 30 it was cutting its order for vaccine against the H1N1 strain by 22 million doses to 14 million doses, CSL spokeswoman Rachel David said in an e-mail today. Vaccine- makers including London-based GlaxoSmithKline Plc and Baxter International Inc., of Deerfield, Illinois, also had orders cut even as governments stepped up efforts to promote the shot.

Vaccine demand has waned since suppliers overcame an initial shortage at the start of the Northern Hemisphere flu season and the number of new H1N1 cases fell. The U.S. government, which increased its vaccine order by 29 percent in September, is running advertisements in national newspapers featuring an open letter urging Americans to get the vaccine.

“The willingness to be vaccinated against swine flu is much lower than what governments projected,” said Andrew Goodsall, a health-care analyst with UBS AG in Sydney. Goodsall estimates the smaller order will trim as much as A$30 million ($28 million) from CSL’s full-year net income.

The U.S. is allowed to change the quantity of its order under its contract with CSL, David said. The company’s contracts with other governments, including Australia and Singapore, don’t contain so-called stop work orders, she said. Excess vaccine material will be used in the production of seasonal flu shots, David said.

Financial Impact

The “financial impact cannot be known until the pandemic and seasonal programs have run their course, but is not expected to be major,” she said.

CSL fell 18 cents, or 0.6 percent, to A$31.93 on the Australian stock exchange today, compared with a 0.8 percent increase in the benchmark S&P/ASX 200 Index.

Glaxo said Jan. 4 it is willing to renegotiate its contract to provide France with 50 million doses of H1N1 vaccine after the government overestimated its needs. Four days later, David Salisbury, director of immunization for the U.K.’s Department of Health, said it was in talks with Glaxo, the nation’s largest drugmaker, about canceling some of its order. The drugmaker said it was also in discussion with Belgium to reduce an order.

To contact the reporter on this story: Simeon Bennett in Singapore at sbennett9@bloomberg.net

Last Updated: January 11, 2010 01:15 EST