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Signed into law by President George W. Bush in July, Project BioShield allows the federal government to spend $5.6 billion over 10 years to purchase vaccines and drugs for smallpox, anthrax, botulinum toxin, Ebola virus, plague, and other pathogens and infections. While biotechnology and pharmaceutical companies praised the initiative at the time, most are still sitting on the sidelines, waiting for additional legislation that would make biodefense a more attractive business prospect.
Part of the reason is fear of litigation and huge damage awards. "Large pharmaceutical companies have so far not been interested in BioShield because of fear of being sued" if they make a vaccine or drug that has adverse health effects, says Frank Rapoport, managing partner at McKenna Long & Aldridge in Devon, Pa., which represents drug companies seeking government contracts.
Unlike traditional defense spending by the Pentagon, BioShield neither funds basic research nor mitigates the ...
