By PAUL ELIAS, AP Biotechnology Writer
Sat Sep 30, 11:48 PM ET
SAN FRANCISCO - By now, millions of anthrax vaccine shots developed through cutting-edge genetic engineering were supposed to be filling a new national stockpile of biodefense drugs.
Instead, five years after anthrax attacks left five dead, sickened 17 and panicked the country, the nearly $1 billion contract awarded by the U.S. Department of Health and Human Services to a tiny and struggling San Francisco Bay Area biotechnology company is plagued with misfortune and delays.
Delivery has been put off until at least 2008 — and maybe later — while the government and VaxGen Inc. trade barbs over who is at fault. The dispute has further tarnished Project Bioshield, a government program that has alienated many potential biodefense contractors.
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Since awarding the contract to VaxGen, HHS has doled out another $1 billion in contracts, including two this year worth a combined $505 million to the Canadian company Cangene Corp. for another anthrax treatment, as well as a drug to treat botulism.
http://news.yahoo.com/s/ap/20061001/ap_on_he_me/project_bioshield_dispute_1