Governments back making of controversial E. coli vaccine

Wednesday, December 19, 2007

by MARY BAXTER

Belleville Dec 20 - An Ontario company that specializes in animal and human health products will get a $10 million provincial loan and a $5 million federal grant to scale up production on an E. coli cattle vaccine whose U.S. licensing application has been put on hold.

On Tuesday, Belleville-based Bioniche Life Sciences Inc. announced it would apply its $10 million loan from the Ontario Ministry of Economic Development and Trade to scale up production of a vaccine which reduces production of E. coli 0157:H7 in cattle. Today the federal government announced a $5 million grant towards the same project project under the federal agri-opportunities program.

The vaccine won an international award for the company. (The 0157:H7 strain doesn't hurt cattle but can kill people or make them very sick.)

The U.S. Department of Agriculture (USDA) wouldn't support the vaccine's license because it questioned the statistical treatment of results from a field use study conducted at the University of Nebraska-Lincoln. Bioniche spokesperson Jennifer Shea said the company continues to have discussions with the USDA concerning the issue.

The vaccine is available for limited use in Canada although it remains under review, here too. Producers can obtain it only through a veterinarian, who must file applications for its use with the Canadian Food Inspection Agency.

Shea said the vaccine is primarily used for beef cattle and involves a three dose regimen -- The first is administered when the animal arrives at the feedlot and the final 60 days before slaughter -- and added there has been some discussion about taking another approach for dairy cattle.

Shea said the provincial loan provides the company with a five-year grace period before repayment begins.

Bioniche estimates it will cost about $25 million to create the capacity to produce 40 million doses of the vaccine over the next two years. BF