Roche cuts Tamiflu production on over capacity

Swiss drug major Roche has announced several new research initiatives to further study the use of Tamiflu (oseltamivir) against the evolving H5N1 influenza virus and outlined the future production strategy for the product.

Roche Pharma Division chief executive William Burns explained that manufacturing expansion has gone to plan - with production capacity increased five-fold between 2004 and 2006 - and the firm is able to make 400 million courses of Tamiflu a year. To date, it has orders from governments for around 215 million courses, so it will now tailor its production schedule as capacity exceeds demand, while maintaining a buffer stock as well as active ingredients and intermediates at all times.

Turnover of Tamiflu was 2.6 billion Swiss francs ($2.15 billion) in 2006 (700.0 million francs from governments). Roche recently said that it expects sales to governments this year to be at the top end of its previous estimates of 800.0 million-1.2 billion francs (Marketletter April 23).