Flu vaccine manufacturer Sanofi Pasteur will have to pay millions of dollars to cover the cost of replacing its botched vaccine, which left hundreds of thousands of New Zealanders without flu protection this year.
The flu jabs had to be delayed for about four weeks when it was discovered Sanofi
Pasteur's vaccine was only effective against two of three of this winter's anticipated flu strains, as the concentration of the third was not strong enough.
Government drug-funding agency Pharmac then had to look elsewhere and pay for doses of a new vaccine to ensure people who needed it were properly protected.
Now Sanofi Pasteur has agreed to meet those costs, Pharmac acting chief executive Sarah Schmitt said yesterday.
"The settlement we have reached runs into millions of dollars and will cover the additional costs that were incurred as a result of having to source alternative vaccine supplies."
Ms Schmitt said the cost was "a few million".
When the vaccine was found to be faulty this year, there was a scramble to find more supplies, with vaccine having to be progressively supplied to the most needy.
Ms Schmitt said that as a result of the experience, Sanofi Pasteur, through its New Zealand suppliers Merck Sharp and Dohme, would no longer be the sole supplier of flu vaccine here.
"Due to the complexities associated with influenza and the manufacture of a flu vaccine, we are mindful that it is wise to have a back-up supplier."
But she said next year, New Zealanders should still have faith that any flu vaccine from the company would be effective.
