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Vaccine Procurement


Update - November 24, 2005

To-date, ID Biomedical Corporation and Sanofi-Pasteur Ltd. have delivered the majority of Canada's 2005/06 influenza vaccine requirement. It is anticipated that the number of doses ordered and delivered within Canada will be sufficient for 2005/06 flu season.

Purchasing Vaccines

Public Works and Government Services Canada (PWGSC), as coordinator of the Federal/Provincial/Territorial (F/P/T) Group Purchasing Program for Drugs and Vaccines, purchases approximately 52 different vaccines across Canada for use in public health campaigns. In 1976, the Conference of Deputy Ministers of Health approved a recommendation for a continuing program for the combined bulk purchase of drugs and vaccines. The mandate of this program is to carry out on behalf of F/P/T governments an ongoing, voluntary arrangement utilizing the procurement services of PWGSC.

In addition, PWGSC works with all provincial and territorial governments as well as Health Canada, the Department of National Defence and Correctional Services Canada to acquire a safe supply of medications for Canadians in the event of emergencies.

In 2004, PWGSC purchased a supply of over $169 million worth of vaccines, prescriptions and over-the-counter pharmaceuticals, while achieving significant value for money. We awarded contracts covering 548 prescription and over-the-counter drugs and 52 different vaccines. Price comparisons have consistently shown that our prices for volume products, especially for vaccines, rank among the lowest in the western world.

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Current Influenza Vaccine Contracts

On August 21, 2001, a $50,799,000 contract was awarded to Aventis Pasteur (now Sanofi-Pasteur Ltd.) for the supply of approximately 50% of the F/P/T governments' annual influenza vaccine needs for a two-year period. On September 25, 2001, a contract in the amount of $323,522,500 was awarded to Shire BioChem Inc. (now ID Biomedical Corporation) for the supply of approximately 50% of the annual vaccine needs for a 10-year period, and pandemic requirements. These contracts were awarded following two competitive Requests for Proposal (RFP) processes run simultaneously.

On June 19, 2003, two separate contracts, each of a five-year duration, were awarded for the supply of influenza vaccine to replace the two-year contract with Aventis: a $38,020,500 contract to Shire BioChem (ID Biomedical Corporation) and a $51,722,500 contract to Aventis (Sanofi-Pasteur Ltd.). The requirement specified a minimum quantity of 2,000,000 doses and a maximum of 12,000,000 doses per year.

In summary, ID Biomedical Corporation will supply 75% of Canada's annual influenza vaccine requirement purchased through the Federal, Provincial and Territorial Group Purchasing Program and Sanofi-Pasteur Ltd. will supply 25%.

The provincial and territorial users have a stated objective that there be two contracted sources of supply. This is intended to maximize the security of supply for this vaccine.

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How Does PWGSC Know How Much Influenza Vaccine to Order?

An estimate of actual requirement is obtained from provinces and territories each year, usually in late February, in order to allow manufacturers sufficient time to produce for the flu season. The contracts entitle PWGSC to use from 90% to 100% of the original estimate and to exercise options for additional quantities if needed. F/P/T users are best able to answer how they set their annual estimates in February.

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What is the Estimated Requirement for the 2005-2006 Influenza Season?

The F/P/T users provided initial estimates totaling 11,045,355 doses for the 2005/06 season. We ordered 8,164,880 doses from ID Biomedical and 2,880,475 doses from Sanofi-Pasteur Ltd.

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How Much Flu Vaccine has been Ordered for the 2005-2006 Influenza Season?

As of November 24, 2005, the total quantity ordered from both suppliers for the 2005/06 season was 11,047,010 doses. ID Biomedical has supplied 8,004,980 doses and Sanofi-Pasteur Ltd. has supplied 3,042,030 doses.

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How Many Doses of Influenza Vaccine did PWGSC Order on Behalf of theF/P/T Users in the Previous Two Years?

For the 2002-03 flu season, PWGSC ordered approximately 10.4 million doses.
For the 2003-04 flu season, PWGSC ordered approximately 11.1 million doses.

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Who are the F/P/T Users for Whom PWGSC Purchases the Flu Vaccine?

PWGSC received forecasted requirements in February 2005 from:

Federal Departments:

  • Dept. of National Defence
  • Health Canada, First Nations & Inuit Health Branch
  • Health Canada, Workplace Health & Public Safety Program
  • Correctional Service Canada

Please note that all the federal government departments combined, use less than one half of one percent of the total quantity of vaccine ordered from the two manufacturers.

Provincial & Territorial Users:

  • Alberta Health — Province of Alberta
  • BC Centre for Disease Control & Prevention — Province of BC
  • Manitoba Health — Province of Manitoba
  • Saskatchewan Health — Province of Saskatchewan
  • Department of Health & Social Services — Government of Nunavut
  • Government of Northwest Territories
  • Department of Health & Social Services — Government of Yukon Territories
  • Ontario Ministry of Health & Long Term Care — Province of Ontario
  • Ministère de la Santé et des Services sociaux du Québec — Province of Québec
  • Department of Health — Province of New Brunswick
  • Department of Health — Province of Nova Scotia
  • Department of Health & Community Services — Province of Newfoundland and Labrador
  • Department of Health & Community Services — Province of Prince Edward Island

The individual users should be approached directly with respect to their own requirements, and how those estimates are arrived at or revised.

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How Much Does the Influenza Vaccine Program Cost?

The vaccine program costs less than $40-million annually. This represents acquisition costs and not program delivery costs. Questions regarding program delivery costs are best directed to the individual F/P/T users.

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What if There is an Influenza Pandemic in Canada?

In 2001, PWGSC contracted on behalf of F/P/T jurisdictions with Shire BioChem (ID Biomedical Corporation) to develop and maintain, in Canada, a state of influenza pandemic vaccine production readiness and to provide vaccine in the event of a pandemic. The award of this 10-year contract was made to Shire BioChem (ID Biomedical) as a result of a competitive bid solicitation. This solicitation was open to all potential domestic and international bidders.

This contract includes the development, in Canada, of sufficient vaccine production infrastructure to produce up to eight million doses per month. Also included in the contract is the requirement that Shire Bio Chem ID Biomedical Corporation ensure a secure supply (in Canada) of all raw materials necessary for vaccine production, including a regular supply of fertilized hens' eggs - the medium in which the influenza vaccine is grown.

ID Biomedical has confirmed that they are ahead of schedule in their efforts to meet contractual requirements and currently have the capacity to produce eight million doses of pandemic vaccine per month if necessary.

Click to view the Canadian Pandemic Influenza Plan.

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Has Canada Purchased any Antivirals?

To-date PWGSC has purchased approximately 28.7M capsules of the antiviral oseltamivir (Tamiflu®) from Hoffmann-La Roche Ltd. on behalf of Federal, Provincial and Territorial jurisdictions.

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