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The major pharmaceutical companies in the US provided almost 90% of the nations flu vaccine at one time. They did this despite a very low profit margin for the product. Basically, they were doing us a favor. In the late 80's a man from North Carolina who had received the vaccine got the flu. The strain he caught was one of the strains in that years vaccine made by a US company. What did he do? He sued and he won. e was awarded almost $5 million! After that case was appealed and lost, most US pharmaceutical companies stopped making the vaccine. The liability out weighed the profit margin.
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A few years ago the US enacted laws protecting childrens vaccine manufacturers from lawsuits, but the number of companies making vaccines for children has not increased. So it is doubtful that a fear of lawsuits is the reason for the lack of vaccine manufacturers in the US.
A more likely explaination is that, unlike Canada, the US does not have a coherent policy on immunization, so the manufacturers have no idea if in any given year will they be able to sell enough vaccine to make a profit. The vaccine for flu takes nearly a year to make and has to be thrown out if it isn't used that season. This makes the business of flu vaccines a very risky proposition. In Canada, the government guarantees the manufacturers that they'll purchase a minimum number of doses each year. This makes it easier for the manufacturers to calculate if they'll make a profit.
The major pharmaceutical companies in the US provided almost 90% of the nations flu vaccine at one time. They did this despite a very low profit margin for the product. Basically, they were doing us a favor. In the late 80's a man from North Carolina who had received the vaccine got the flu. The strain he caught was one of the strains in that years vaccine made by a US company. What did he do? He sued and he won. e was awarded almost $5 million! After that case was appealed and lost, most US pharmaceutical companies stopped making the vaccine. The liability out weighed the profit margin.
[/ QUOTE ]
A few years ago the US enacted laws protecting childrens vaccine manufacturers from lawsuits, but the number of companies making vaccines for children has not increased. So it is doubtful that a fear of lawsuits is the reason for the lack of vaccine manufacturers in the US.
A more likely explaination is that, unlike Canada, the US does not have a coherent policy on immunization, so the manufacturers have no idea if in any given year will they be able to sell enough vaccine to make a profit. The vaccine for flu takes nearly a year to make and has to be thrown out if it isn't used that season. This makes the business of flu vaccines a very risky proposition. In Canada, the government guarantees the manufacturers that they'll purchase a minimum number of doses each year. This makes it easier for the manufacturers to calculate if they'll make a profit.