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Biotech Firms Worry About Liability, Funding in Wake of Pending “Bioshield II” Legislation From Tuesday, June 22, 2004 issue.

Biotech Firms Worry About Liability, Funding in Wake of Pending “Bioshield II” Legislation


Biotechnology companies are expressing concerns about liability, funding and patent protection as the U.S. Congress begins considering a new round of biological defense legislation dubbed “Bioshield II,” the Boston Globe reported Friday (see GSN, June 10).

Senators Joseph Lieberman (D-Conn.), Orrin Hatch (R-Utah) and Edward Kennedy (D-Mass.) have all started work on new proposals for Bioshield II, including offering extended patents for certain drugs that do not have major commercial value and allowing current vaccine liability programs to cover some projects.

Executives worry that their companies could be sued over side effects caused by drugs rushed to treat people for agents such as smallpox or anthrax during an emergency. They also said they need more money to pursue work on biological defenses.

As long such issues remain unresolved, pharmaceutical firms and other businesses are unlikely to take on a great deal of biological defense work, said Richard Hollis, chief executive of a California pharmaceuticals company.

Some say greater incentives need to be offered to firms.

“The question is, why is it that the industry is still completely disinterested, and what will it take to get them interested?” said Chuck Ludlam, legislative counsel to Lieberman. “If we don’t get them interested, we have no prospects for developing the medicines we need,” he added (Ross Kerber, Boston Globe, June 18).


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