J&J markets hepatitis C test, Abbott's next - Johnson and Johnson; Abbott Laboratories

J&J markets hepatitis C test, Abbott's next

Johnson & Johnson subsidiary, Ortho Diagnostics Systems Inc., Raritan, N.J., is meeting demand for its hepatitis C test, having already shipped approximately 2 million of the tests to blood banks and hospitals in the United States.

Ortho began shipping its Ortho HCV ELISA Test System the day after the test received Food and Drug Administration approval on May 2, a spokesman said. Ortho also is supplying test kits to Europe, Japan, Canada and Australia.

LifeSource Blood Centers, a not-for-profit agency that supplies 70% of the blood in northern Illinois, has already spent more than $60,000 on machines marketed by J&J to run the test. LifeSource will immediately test all incoming blood for the disease and all blood on its shelves and on the shelves of the 56 hospitals it serves.

LifeSource was concerned whether Ortho would be able to meet the tremendous demand for the test. "There were some worries that the supply would be down," a spokeswoman said. Ortho spokesman Bob Kniffen said the company is meeting the demand and is accepting all orders for the test.

In the meantime, Abbott Laboratories, Abbott Park, Ill., is awaiting FDA approval for its hepatitis C screening test. LifeSource was equipped to run the Abbott tests, but purchased $60,000 in testing equipment from Ortho because it wanted to run the test on its blood supply immediately. Abbott already is distributing its tests in Australia and the Far East and will begin shipping the tests to Europe July 1, according to an Abbott spokesman. Industry analysts expect Abbott to begin shipping the tests in the United States in about a month.

Ortho will market the test to high-volume customers, the large blood banks and hospitals, while Abbott will focus on its traditional markets of small blood banks, clinics, labs and hospitals. Sales reps form Abbott's diagnostic division will sell the test and demonstrate how the test works, said Chuck Weber, an Abbott spokesperson. Abbott will also sell the test through telemarketing.

Abbott, at the end of last year, received a co-marketing license for the antigen used to develop the test from J&J and Emeryville, Calif.-based Chiron Corp., the producer of the antigen. Chiron and J&J formed a joint venture in 1986 to co-develop a series of tests for AIDS and hepatitis. They recently acquired most of the blood screening business from E.I. du Pont de Nemours & Co., including product rights for tests used worldwide to screen the blood supply, as well as key field sales, technical service and research personnel.

A spokesman for Chiron Corp. said Chiron and J&J licensed the antigen to Abbott because Abbott developed a format for the test, called the bead format, that is used by most blood banks and hospitals. The other format is a microplate reading. "It seemed better to us to develop an arrangement whereby customers in either format could have the test," said the Abbott spokesman.

"We'll grow faster together than individually."

He added that by establishing an exclusive marketing agreement with Abbott, Chiron and J&J could have greater control over the $240 million market for hepatitis C tests. "Abbott is a significant competitor in developing the hepatitis C test--we made them an ally."

Although Ortho received FDA approval first, Abbott expects to have a strong presence in the United States and foreign markets. Ortho submitted its test to the FDA almost seven months before Abbott did.

A large number of blood banks are running tests for other diseases on Abbott's systems, such as tests for hepatitis B, AIDS and HTLV-1 (which causes a type of leukemia) and these banks will be supplied with its hepatitis C test as soon as it is approved. The test has applications for diagnostics as well as for blood screening.

The FDA has recommended that hepatitis C tests be used in all blood banks.

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