U.S. Lays Out $1 Billion for Swine Flu Vaccine

May 22, 2009— -- The Centers for Disease Control and Prevention said today that it has at least one, and possibly two versions of the new swine flu virus that may help drug makers develop a vaccine against the novel strain.

The first of these so-called "seed viruses" is a bit like a microscopic Frankenstein, consisting of pieces from the new strain combined with other viral fragments that will allow the virus to grow well in chicken eggs -- a preliminary step in the vaccine-making process.

The other was created through reverse genetics, a newer technique.

Once the CDC sends these template viruses to drug manufacturers -- probably by the end of next week -- the companies can use them to begin cranking out pilot lots of vaccine by mid to late June.

And that's where a $1 billion-dollar program -- also announced today -- comes in.

The first wave of government money will go to five flu vaccine manufacturers. So far, drug maker Novartis will receive the largest chunk of the allotment -- $288.8 million -- while GlaxoSmithKline will get $181.1 million and Sanofi Pasteur will receive $190.6 million.

An additional $150 million will go to these three companies as well as two others -- MedImmune and Australia's CSL -- for the purpose of developing test lots, which are needed for clinical trials and to test for potency.

The remaining money is still in contract negotiations.

The money comes not a moment too soon, said Dr. Bruce Gellin, director of the National Vaccine Program Office.

"It's critically important that we ask the manufacturers to get started, to begin to make the materials for a vaccine," he told ABC's World News.

Initially, the government's goal is to create enough vaccine to inoculate 20 million people -- what Gellin calls the "critical workforce." Gellin said this group mainly consists of first responders and whomever else may be in harm's way from the virus.