Indonesia, Baxter sign MOU on bird flu vaccine

JAKARTA, Feb 7 (Reuters) The Indonesian government signed a memorandum of understanding with a Swiss unit of US company Baxter International Inc today to develop a human bird flu vaccine.

The deal has stirred controversy because it has been linked to an Indonesian decision not to share samples of its H5N1 bird flu virus with foreign laboratories.

Experts say sharing of H5N1 samples is crucial as it allows specialists to study the makeup of the virus, and trace its evolution and the geographical spread of any particular strain.

Samples are also used to prepare vaccines.

However, Kim C Bush president of the vaccine unit of Swiss-based Baxter Healthcare SA said at the MOU signing ceremony the decision on samples was Indonesia's, not the company's, and was not tied to the MOU.

''The government providing strain and samples to other countries and other agencies is completely unrelated with the collaboration under the MOU. Baxter is not involved in those processes,'' Bush said in a speech.

Indonesia has the highest fatalities of any country in the world from the disease, accounting for 63 deaths out of the global total of 166 over the past four years. Bird flu largely remains an animal disease, but can kill people who have close contact with infected fowl.

A draft news release obtained by Reuters said that under the deal the health ministry's research and development agency would supply specimens of H5N1 and Baxter would provide technology to help develop a vaccine.

A health ministry spokeswoman said on Tuesday the vaccine was to prevent poultry-to-human infection, which was needed for the current situation but not for a future pandemic that might involve human-to-human transmission.

Under the MOU Indonesia would have the right to produce and market the bird flu vaccine domestically as well as export it to a number of countries. Production would be carried out by makers appointed by the health ministry, the draft news release said.

An Indonesian official said earlier this month development of the vaccine was at a very early stage.

''It is not yet for commercial production. It still has a long way to go,'' bird flu commission chief Bayu Krisnamurthi told Reuters.

REUTERS RL VV0945