Swine flu vaccine imports face ax

The government is considering canceling some of its swine flu vaccine purchase contracts with foreign pharmaceutical companies due to a likely surplus, according to health minister Akira Nagatsuma.

"We are now negotiating with the two (foreign) companies because it is likely that there will be more vaccines than necessary," Nagatsuma said Monday at a Lower House committee discussing health and welfare issues.

"It is important to have stockpiles of vaccines. But still, we are expecting a surplus of imported vaccines," he said.

The government has signed deals with Britain's GlaxoSmithKline PLC and Novartis AG of Switzerland for a combined 99 million doses.

Nagatsuma's remarks came amid growing speculation about an oversupply of vaccines if the entire contracted amount is imported. Coupled with domestically produced vaccines, an oversupply is likely, medical experts say.

Nagatsuma had earlier indicated that Japan might cancel part of the purchase contracts, pointing to similar moves in European and other countries, because the number of cases of the new H1N1 flu is decreasing.