SEC Action Changes Accounting Guidelines To Encourage Vaccine Makers' Participation In Stockpile Programs, Wall Street Journal Reports, USA

Main Category: Immune System / Vaccines
Article Date: 07 Dec 2005 - 4:00 PST

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The Securities and Exchange Commission on Monday issued a guidance that said vaccine manufacturers can record revenue on vaccine placed in government stockpiles and do not have to wait until their products are distributed, the Wall Street Journal reports. SEC officials said that they issued the guidance to address concerns that previous accounting rules "may have the unintended consequence of causing some vaccine manufacturers to decline to participate in these critical stockpile programs." Although SEC is "not aware" of cases in which vaccine manufacturers have refused to participate in government stockpile program because of revenue concerns, agency officials said that they issued the guidance "to remove the accounting questions from the debate." In a letter sent on Monday to SEC Chair Christopher Cox, Senate Budget Committee Chair Judd Gregg (R-N.H.) and Sen. Richard Burr (R-N.C.) wrote that the guidance "will promote a robust stockpile program and help ensure completion of future stockpile requests." Gregg and Burr had raised concerns that the previous accounting rules could discourage production of vaccines and other products to treat and protect against a number of potential biological agents, as well as pandemic flu. In a similar letter sent to SEC last month, three other senators asked the agency to "review any potential impediments" to participation by vaccine manufacturers in government stockpile programs. An SEC spokesperson said that the agency had "heard from several senators on this issue," adding that "we appreciate their concerns" (Solomon/Burns, Wall Street Journal, 12/6).

Liability Protection Debate
Meanwhile, "[l]obbying has intensified in recent days" against legislation that would provide liability protection for vaccine manufacturers that produce vaccines for avian flu, smallpox and other diseases, the Hill reports. Vaccine manufacturers maintain that liability protections are necessary to encourage development of new products, and Republican congressional leaders have sought to include such protections in the fiscal year 2006 defense appropriations bill. However, labor unions that represent health care workers and first responders -- such as the American Federation of State, County and Municipal Employees, the National Association of County and City Health Officials, the Association of State and Territorial Health Officials, the American Nurses Association and the American Public Health Association -- maintain that such liability protections would discourage vaccinations because of limits placed on compensation for individuals injured by vaccines (Young, The Hill, 12/6).

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