This season, the company’s distribution schedule is approximately three weeks later than last year. However, this schedule is still consistent with the U.S. Centers for Disease Control and Prevention’s (CDC) recommendations for the timing of influenza immunization. As reported by the CDC, most manufacturers plan to deliver the bulk of their doses in October and November. Early in the season, some providers may appear to have more influenza vaccine than others because there are multiple manufacturers, distributors, and distribution channels -- each of which has different distribution plans and schedules. Some health-care providers may not have their full allotment of vaccine until November or later, depending upon when and from which manufacturer or distributor

they ordered.

As a result of vaccine arriving later than last season, health-care providers are encouraged to schedule their immunization clinics to coincide with the availability of supply. The CDC recommends immunizing during October and November, as well as December or later, since influenza typically does not peak until February.

Sanofi pasteur, the largest U.S. manufacturer of influenza vaccine, is expected to provide approximately 40 percent of the nation’s influenza vaccine supply. The company is committed to providing access across a broad spectrum of customer segments with distribution plans for its 2006-2007 Fluzone vaccine as follows:

- 35% of doses to individual physicians and physician groups

- 26% of doses to hospitals and long term care facilities

- 26% of doses to Public Health

- 8% of doses to Community Immunization Providers (including the Visiting Nurse Associations of America)

- 5% of doses to retail pharmacies.

At this point in time, sanofi pasteur’s shipments have been tracking closely with this projected breakout of segments.

As in past years, sanofi pasteur is using a multi-phased delivery process in which customers have received at least a portion of their order to date. This shipping process allows the maximum number of providers to begin immunizing as early as possible.

To keep pace with the nation’s growing and changing immunization needs, sanofi pasteur is expanding its production capability. In July 2005, construction began on a new influenza vaccine production facility in Swiftwater, Pennsylvania, that will more than double the company’s U.S. capacity. The new plant is expected to come online for the 2008-2009 season.