New Zealand Orders Swine Flu Vaccine From Baxter

The government of New Zealand has ordered an initial supply of 300,000 doses of swine flu vaccine from Baxter International Inc. (BAX), according to a government statement issued Monday.

Baxter, based in Deerfield, Ill., announced in mid-June that it had launched full-scale production of a commercial vaccine for the flu strain, also known as A/H1N1, and that it could be ready for use by early July.

The company also noted that "a number of national public health authorities" had agreements with the company that allowed them to place orders following a pandemic declaration. The World Health Organization officially declared a pandemic for the virus on June 11.

In the case of New Zealand, the government said it has agreed in principle to offer swine flu vaccination to frontline health staff and emergency personnel. The 300,000 doses on order from Baxter is sufficient for 150,000 workers, the government said.

Health Minister Tony Ryall noted that in addition to this purchase, the government has a long-standing option to access more vaccine if needed under an existing agreement with Australian firm CSL Ltd (CSL.AU).

New Zealand on Saturday confirmed the nation's first deaths - three people - linked to swine flu.

Baxter has a cell-based method for making vaccine that it says may allow for faster production and delivery than the traditional production methods that rely on chicken eggs.

Several other companies including Novartis AG (NOVN.VX), GlaxoSmithKline Plc (GSK), Sanofi-Aventis (SNY) and Solvay SA (SOLB.BT) are also involved in the effort to produce swine flu vaccines and supply governments.

Baxter shares recently traded down 19 cents to $52.96.

-By Jon Kamp, Dow Jones Newswires; 617-654-6728; [e-mail]