Tuesday, November 9, 2004

Is the SEC Responsible for a Vaccine Shortage?

Yahoo! News - SEC 'glitch' hampers child vaccine

Just when you thought that everything wrong with the world had been blamed on the SEC, here comes a new one. The CDC is blaming the SEC for a shortage of vaccines for our nation's children.

According to the USAToday article, SEC accounting rules prevent companies from recognizing sales as revenue until the customer takes delivery of the product. The unintended effect of the regulation is that drug companies cannot provide a stockpile of vaccine, since they cannot recognize income from stockpiles held in factories.

It is all very complicated, since vaccines expire and production has to be managed carefully, and it is all the SEC's fault.

Next we will be hearing that the problems with Vioxx were caused by the Transportation Safety Administration.
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