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VaxGen says surprised by call for vaccine probe

Reuters

Apr 5, 2006 — NEW YORK (Reuters) - VagGen Inc. on Wednesday said it was surprised by a call for an investigation into its U.S. government anthrax vaccine contract made by a U.S. congressman, but said it would cooperate with the probe if there is one.


VaxGen said it believed the $877 million contract for 75 million doses of its vaccine was won following an open, competitive and fair bidding process that, "to the best of our knowledge, complied with any and all applicable laws, rules and regulations."

VaxGen Chief Executive Lance Gordon said he was surprised to see media reports of an investigation being proposed by Congressman Mike Rogers of Michigan.

"We have reached out to Congressman Rogers this evening in an effort to address his concerns, but have yet to hear from him," Gordon said in a statement.

"Although we believe there are no grounds for an investigation, if there is one, we look forward to fully and openly participating in it. We also welcome the opportunity to testify before any appropriate committee of Congress to explain the contract and our progress in developing a modern anthrax vaccine," Gordon added.

The Brisbane, California-based company last month said it was at least a year behind schedule in delivering the vaccine after it failed a key human trial.

And on Tuesday the U.S. Food and Drug Administration released a warning letter it sent to VaxGen, admonishing the company for exaggerating the benefits of its experimental anthrax vaccine at a meeting last October.

The agency said the biotech company overstated the strength and purity of the vaccine, and said it had made misleading statements about its superiority over a rival company's anthrax vaccine.

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