Business

Obama Administration Invests $433 Million in Experimental Smallpox Drug

[Editor's note: smallpox is indeed a horrifying and terrible disease; this cannot be overstated. It is not the intent of this article to mitigate the very real and terrible nature of the disease. This point of this article is to question the White Houses’ intentions in this deal.]

Several critics believe that the Obama administration’s $433 million investment in the new ST-246 smallpox vaccine reeks of scandal.

How could a multimillion dollar investment in an antiviral pill that could cure smallpox be scandalous?

Part of the reason lies in the word “could.” The drug has never been tested on humans.

See, smallpox was all but eliminated in 1978 and the U.S. already has vast stockpiles of the original vaccine. Why would the current administration push so vigorously to invest millions of dollars in what could rightly be described as an unnecessary (and untested) drug?

As the saying goes, “follow the money.”

The company that scored the federal contract is called Siga Technologies and they won it through a “sole-source” procurement; they are the only company that will be doing business with the Feds.

And here’s the best part: the controlling shareholder of Siga Technologies is billionaire Ronald O. Perelman, one of the world’s richest men and a longtime Democratic Party donor, reports the Los Angeles Times. Moreover, back in June 2010, Siga named Andrew Sterns (former head of the SEIU) to its board.

That certainly raises some eyebrows.

Surprisingly enough, the deal gets even more suspicious. Newser reports:

In a Solyndra-esque tale, White House officials overrode bureaucrats who advised against the deal and Siga’s high price, replacing government negotiators and blocking other companies from submitting competing bids . . .

. . . White House officials defended their move, noting a 2004 study that called smallpox one of 12 pathogens that were a “material threat” to be used as a biological weapon.

So let’s get this straight: the Obama administration replaced anyone who advised against the deal and then invested millions of dollars on an untested drug for the express purpose of preparing for a smallpox attack?

Admittedly, a smallpox bomb (or however they would do it) is a terrifying thought. But the investment still seems a bit excessive, if not downright paranoid.

If there was an actual smallpox attack, the U.S. government has an estimated $1 billion worth of smallpox vaccine on hand and ready to go. There is actually enough of the medicine to inoculate the entire U.S. population and quickly treat people exposed to the virus.

Furthermore, as mentioned briefly in the above, Siga’s drug has not yet been tested on humans and what little testing has been performed on animals cannot be proven to be effective.

So why invest in an untested, unproven and unneeded product?

“We’ve got a vaccine that I hope we never have to use — how much more do we need?” said Dr. Donald Henderson, the epidemiologist who led the global eradication of smallpox for the World Health Organization and later helped organize U.S. biodefense efforts under President George W. Bush, accoridng to the Times report.

“The bottom line is, we’ve got a limited amount of money,” he added.

Just in case the deal didn’t seem suspicious enough, here are some other interesting facts:

  1. The smallpox vaccine currently stockpiled by the U.S. government has a shelf life of several decades
  2. The new untested drug from Siga is guaranteed for only 38 months

Oh yeah, and Siga Technologies will make a killing from the sale:

The contract calls for Siga to deliver 1.7 million doses of the drug for the nation’s biodefense stockpile. The price of approximately $255 per dose is well above what the government’s specialists had earlier said was reasonable, according to internal documents and interviews.

Although the company had originally won the contract on an exclusivity basis, and administration officials had intended to award Siga the “exclusive option to replenish or expand the stockpile,” the White House had to back off that portion of their agreement because the smaller pharmaceutical company Chimerix protested.

“In June, the government settled the dispute by dropping the exclusivity provision,” writes the Times. “That limited the value of Siga’s contract to $433 million and meant that other companies could compete to fill future orders for the drug.”

Read the entire Las Angeles Times report here.

(h/t Newser)

Comments (62)

1 2
  • OneTermPresident
    Posted on November 15, 2011 at 11:01am

    Is It any wonder? The most CORRUPT president and administration in HISTORY. Wake up America… no matter your race or political party this man and his crooked thugs MUST GO Fast and Furiously!

    Report Post » OneTermPresident  
    • Ruler4You
      Posted on November 15, 2011 at 11:16am

      Call it ‘investment’ if you want. IMHBLO, it’s cronyism and political payback to donors and supporters. The same thing this administration has done since day 1.

      The entire balance of his “Redistribution of Wealth” scheme has revolved around money he has given to LARGE supporters and friends. In my estimation all he really wanted was to ‘redistribute’ wealth into his hands and his friends hands. He’s a white collar criminal extorting and misappropriating money of the U.S. government.

      Report Post » Ruler4You  
    • Bluebonnet
      Posted on November 15, 2011 at 11:23am

      Yeah!. Lets’ experiment again with our children. What happened to common sense about what happens to children when they have a reaction to these drugs that could cause all kinds of serious, life long problems?

      Report Post »  
    • JLGunner
      Posted on November 15, 2011 at 11:41am

      Last I heard, smallpox was eradicated.

      Report Post » JLGunner  
    • InversionTheory
      Posted on November 15, 2011 at 2:14pm

      @JL — It’ll be back. That’s the funny thing about life, it has a way of getting around our best intentions.

      Report Post »  
    • dianec6
      Posted on November 15, 2011 at 2:15pm

      My stars! There has been a perfectly good smallpox vaccination for a long time. Why would we trust an“experimental” one? I’m old enough to have had one, but I sure don’t want my children or grandchildren getting an experimental vaccine.

      Report Post »  
    • JRook
      Posted on November 15, 2011 at 3:56pm

      Ah so I guess Rick Perry was the consultant on this move.

      Report Post »  
  • gdbhusker
    Posted on November 15, 2011 at 10:39am

    Obama is corrupt I agree…. but you need to be careful when you start saying that all the corruption is of “jewish” origins…. Hitler convinced his people that their problems were all created by jews as well…and history tells us how that ended..the problem is the PERSON not the faith. there is nothing in the Talmud, Tanak, or Tora, that states as part of Judaism…one must seek the absolute control of the world through corruption, deceit, and /or fraud! there are however several jewish sounding people, or for that matter they may well be of jewish lineage, that are in fact secular. America says that 92% of it’s population is Christian….really??? they are CINO!!! ( Christian in name only) because most don’t know or follow the teachings and tenants of Christ!! they just say Christian because that is what their parents told them they are. Likewise many people of Hebrew/Israeli heritage have NO clue about the teachings or traditions of living the faith….lets not get angry at the religion of the crooks…but just the crooks….peace..

    Report Post » gdbhusker  
  • wildwood
    Posted on November 15, 2011 at 9:54am

    More campaign contributors being paid off with tax payers dollars!!! The stuff they bought hasn’t even been tested on humans!!!!!! Maybe this is Cass Sunstien way to reduce the population!!!!
    If we don’t keep letting our representivies know , this has to stop , it will just keep going on!!!! Together we can move mountains!!!!!

    Report Post »  
  • JohnHW
    Posted on November 15, 2011 at 9:46am

    $255 PER DOSE. The previous doses cost just $3.00 PER DOSE. This goes beyond any common scents. Also, these doses have a shelf life of 38 months. While you are at it. The only smallpox since 1978 are in freezers in Russia and the USA. Of course, the dose can’t be tested because noone has it.

    IMPEACH OBAMA NOW!!!!!

    Report Post » JohnHW  
    • InversionTheory
      Posted on November 15, 2011 at 2:13pm

      Sounds like typical government spending… Simple solution available for a few pennies? BAH! Let’s spend billions coming up with an inferior solution that costs $10,000 every time. I’d love to see what would happen if we forced government to turn a profit every year and return the excess to the citizen-investors (that’s taxpayers, by the way…just want to be clear).

      Report Post »  
  • Daddy Hawg
    Posted on November 15, 2011 at 9:30am

    All of this goes right in line with the 60 Minutes report on the insider trading that is illegal for you and I but not our government officials. OWS should be made to read these reports and then protest what really needs protesting!

    Report Post » Daddy Hawg  
  • Uechi
    Posted on November 15, 2011 at 8:54am

    57States : “The Jewsig Elite”?: Why don’t shove your Nazi views up your butt you JO!

    Report Post »  
    • smithclar3nc3
      Posted on November 15, 2011 at 9:00am

      This is why Washington needs to have it’s teeth removed radical changes in the spending needs to be adresses .Obama is hands down the most corrupt and vile individual to get in the white house. And he’s just on par with his liberal progressives.

      Report Post »  
    • 13th Imam
      Posted on November 15, 2011 at 9:24am

      Just another in a long line of DEMOCRAT donors of AMERICAN TAXPAYERS(53%) stolen cash, most to be donated to the “SCREW AMERICA FOUR MORE YEARS” reelection tour. John Corzine, Solyndra, SolarTech, all Barry’s Buttboys.

      Report Post » 13th Imam  
  • Uechi
    Posted on November 15, 2011 at 8:52am

    Why would you invest in a comapny that is going to make a Small Pox Vaccine that costs over $200 a dose when the current available doses cost about $3.00? Why would you even get in the Small Pox business when Small Pox is virtuallyl extinct outside of live samples in Russia and the USA. Maybe because the Government wants total control of a possible biological weapon or maybe because Obama and his cronies are crooks extraordinaire.

    Report Post »  
  • hyndsyte2020
    Posted on November 15, 2011 at 8:44am

    This may smack of cronyism, but how many companies can make this stuff. The idea that small pox is gone from the earth except for lab samples in the US and Russia is a huge leap of faith. Experiments conducted at the C.D.C just after 9-11 showed that even a easily modified version could blow right through the currently stockpiled vaccine. We need to get a grip and make sure that no matter who profits, an effective countermeasure is found and sufficient quantities are produced to stop a calamity. If not, those lucky enough to live to object may have to argue with mountains of corpses.

    Report Post »  
    • bandi9
      Posted on November 15, 2011 at 8:57am

      well, arent you the dumba**. it “may” smack of cronyism?? these kinds of stories just keep coming out of this corrupt administration, but we do nothing about it. Never thought I would say this, but I fear civil insurrection may be the only alternative course of action. Our government no longer represents us.

      Report Post »  
  • EqualJustice
    Posted on November 15, 2011 at 8:21am

    Hey BLAZE, I sent you this tip BEFORE it even broke on Fox News. At least take a look at the TIPS you get, good or bad. YOU FORGOT the part about SEIU Andy Stern JOINING THE BOARD OF SIGA in 2010! CONNECT THE DOTS…. LALALALA

    Report Post » EqualJustice  
  • PTBarnum
    Posted on November 15, 2011 at 8:14am

    I wouldn‘t take their Swine Flu vaccine and I won’t be taking this vaccine either. I don’t believe they have our best interest in mind. They are only concerned with lining their pockets.

    Report Post »  
    • beebacksoon
      Posted on November 15, 2011 at 8:51am

      PTBarnum
      I didn’t take the swine flu shot, either.
      If I had younger children, I wouldn’t approve the Gardisil injection either. (First it was for girls, now it’s for girls AND boys!)
      And, I certainly wouldn’t take this new smallpox injection. It’s all about greed. Americans will never really know exactly what our govt would ask legalized drug dealers (i.e.; drug companies) to include in any of these drugs!

      Report Post »  
  • 57states
    Posted on November 15, 2011 at 8:12am

    there is no way in hell it cost a 1/2 billion to do test on small pox! THEY ARE LAUNDERING MONEY FOR THE PROGRESSIVE MACHINE

    Report Post » 57states  
    • Tifn8r
      Posted on November 15, 2011 at 8:49am

      Yuh-huh! It can so cost that much. It’s hard to make something that gives people smallpox (to control the population for the good of the earth of course,) all while making it look like it’s a vaccine.

      Honestly- Money laundering is so yesterday for this administration….

      Report Post » Tifn8r  
  • Moozmom
    Posted on November 15, 2011 at 8:12am

    “Could” the government know that another smallpox strain is out there as a biological weapon and requires another cure than the standard cure already available? Seems to me that 1.7 million doses ought to cover the federal employees and their families and these rest of us will be let out to die.

    Report Post »  
  • marthasusan40
    Posted on November 15, 2011 at 8:07am

    OK, First we already have enough of the antidote for the entire population of the USA on hand and its shelf life is decades….Second, Andy Stern (SEIU) is on the board of this company SIGA, Third, this administration will go down in history as the most corrupt ever.

    Report Post »  
  • Striker
    Posted on November 15, 2011 at 8:00am

    No one here is surprised. I still can’t believe Barry got elected. This is what you get when you do buisness with the Chicago bunch. This administration is very much like Capone in the 20′s. Every one is on the take. Where is our Elliott Ness?

    Report Post »  
  • Lost In Space
    Posted on November 15, 2011 at 7:50am

    And the hits keep coming,if this marxist gangster gets reelected were doomed.Anyone but barry/2012

    Report Post »  
  • slvrserfr
    Posted on November 15, 2011 at 7:43am

    Do people forget that Andy Stern is on the board of directors of SIGA and bought up their stock when it was under $5 last year. Glenn Beck reported this on his show when he was on Fox News but he couldn’t put the pieces of the puzzle together as to why he would do this, its too much of a coincidence that Obama would do this while still in power – this is obviously the reason why – hello…Andy was the most frequent visitor of the White House when he was union leader – obviously he would had Obama on speed dial to do this ‘favor’ for him to exponentially benefit from a significant increase in the stock value.

    Report Post »  
  • slvrserfr
    Posted on November 15, 2011 at 7:37am

    Have people forgotten that Andy Stern joined the Board of Directors for SIGA and bought up this stock awhile back when it was really cheap? Glenn Beck even reported this when he was on Fox News!

    Report Post »  
  • Maidoff101
    Posted on November 15, 2011 at 7:32am

    This is in your face Political Patronage,Cronyism and reeks of corruption, If anyone on a Local level or Private Industry even attemptd to Hijack OUR Money for an obvious Scam there would be a Grand Jury and ultimate Indictments for Grand Larceny 433Million Counts!

    Report Post »  
    • smithclar3nc3
      Posted on November 15, 2011 at 7:57am

      Write your congressman for what good it will do you. They’re all in ity together Left/Right are nothing more than two sides of a two headed coin. Heads you win heads you lose.
      Time to flush D.C down the drain. Invoke state soveriegnty and cut the heads off the seven headed beast that sit atop virginia.

      Report Post »  
  • Libertyandfreedom2012
    Posted on November 15, 2011 at 7:18am

    Is anyone suprised at this story? Most corrupt administration ever! (so says comic book guy)

    Report Post »  
  • raderby
    Posted on November 15, 2011 at 7:15am

    WHEN will this thieving admin. get the cuffs slapped on them?
    CAREER PATH in the fundamentally changed Obama world:
    1. Work in bio-weapons…
    2. Make “weaponized” smallpox.
    3. Make antidote.
    4. make billions selling both
    5. keep creepy prez in office to do it again with anthrax or something else.

    Report Post » raderby  
    • goindaimond
      Posted on November 15, 2011 at 3:21pm

      I agree. The smallpox vaccine is a live virus and extremely dangerous. Just tell me what good can come of their dabbling in this stuff. This should be investigated. They may be planning on using it on their own people, kind of like Saddam Hussain & the mustard gas.

      Report Post »  
  • TEARS FOR AMERICA
    Posted on November 15, 2011 at 7:14am

    What???? What???? Where are our congressmen on this? Hello…are you out there? And all of this money…where is it going? Where, indeed…

    Report Post » TEARS FOR AMERICA  
    • Agnes
      Posted on November 15, 2011 at 9:29pm

      Where are the so called politicians who pretend to look out for working class Americans?

      Report Post »  
  • ADNIL
    Posted on November 15, 2011 at 7:12am

    “Biological weapon” says it all to me. New and improved modified virus, no doubt. Create a crisis, produce the “solution”. Make money. Reduce the population. BRILLIANT! (sarcasm alert)

    Report Post »  
  • 4xeverything
    Posted on November 15, 2011 at 7:02am

    Glenn Beck warned about the those in the Admin. getting involved with pharmacuticals about a year ago. Creepy!! I’d like to see The Blaze do the leg work and get quotes on the same order from many other pharm. manufacturers. I‘d also like to know all of the specifics about the drug that is already here and the new proposed drug that hasn’t even been tested yet.

    Report Post » 4xeverything  
  • Amazingoly
    Posted on November 15, 2011 at 7:01am

    The White House scandals are coming now almost daily, and we hope Darrell Issa and his investigations can get up to speed to put a stop to them and prosecute the ones who are guilty of crimes.

    Report Post »  
    • Depressed_American
      Posted on November 15, 2011 at 9:29pm

      What good are these congressional investigations if they don’t prosecute these CRIMINALS!!! Holder, Obama, Pelosi, Ried, and any other Congressman, no mater what party they belong too. A Criminal is a Criminal!!!!

      Report Post » Depressed_American  
  • smackdown33
    Posted on November 15, 2011 at 6:52am

    Ronald O. Perelman and Andrew Stern, how surprising, both Jews and part of the Jewish mob that is destroying the American culture. Add them to the growing list: Marx, Alinsky, Piven, Soros, Sunstein, Bernanke, Bloom, Berwick, Axelrod, Emanuel, Klain, Bernstein, Summers, Orszag, Lew, Kagan, Ginsberg, Breyer, Sulzberger, Bloomberg, Feinberg… http://articles.latimes.com/2008/dec/19/opinion/oe-stein19... http://www.haaretz.com/news/features/white-man-s-burden-1.14110

    Better wake up America.

    Report Post »  
    • smackdown33
      Posted on November 15, 2011 at 7:01am

      Somehow the connect to the LA Times above misdirected. Here it is: http://www.latimes.com/news/opinion/commentary/la-oe-stein19-2008dec19,0,4676183.column

      Report Post »  
    • 57states
      Posted on November 15, 2011 at 8:16am

      I have been saying that for a while now! Pay attention to last names! The radicals and the ones incharge of americas demise are jewish elite!

      Report Post » 57states  
    • Cesium
      Posted on November 15, 2011 at 11:00am

      I guarantee you they are not practicing jewish philosophy. You can list twice as many non jews involved in similar marxist plights. What’s your point? oh You’re an anti-semite. Go hang out with OWS

      Report Post »  
    • smackdown33
      Posted on November 15, 2011 at 11:38am

      Cesium, no antisemitism here, just pro Americanism. If you do not identify the disease, you can not prescribe the cure. Please note that the above two links are the words of Jews, about Jews.

      Report Post »  
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