Subject: Japanese Join World Push to Cure AIDS Date: Published: 11/10/88 124 lines Source: Wall Street Journal. Copyright Dow Jones & Co. Inc. Japanese Join World Push to Cure AIDS --- Companies See Profit in Treatment, But Not Many Domestic Cases ---- By Kathryn Graven Staff Reporter of The Wall Street Journal TOKYO -- The Japanese like to blame their AIDS victims, the few they'll admit to having, on bad Western influences, but that hasn't stopped Japanese companies from jumping on the AIDS research bandwagon in the hope of future profits. Though still shy about disclosing specifics, Japanese pharmaceutical and biotechnology companies are stepping up their research on acquired immune deficiency syndrome by reorganizing laboratories, setting up new domestic research centers and establishing subsidiaries and ventures overseas. "No one wants to admit it, but they all think there is a big potential market for AIDS drugs," says a Japanese physician who cares for AIDS patients. With the rest of the world sinking millions of dollars into AIDS research, the Japanese worry that if they don't act now they may lose out later. At stake, some argue, is not only the market for AIDS drugs, but also new medical and pharmaceutical technologies that may spin off from AIDS research. The Japanese have made no secret of their desire to be major contenders in biotechnology and pharmaceuticals. This year has been a major turning point in Japan's efforts to bring private and public research together to combat the deadly AIDS virus. The government established the AIDS Research Center, a new division in the National Institute of Health, allocated money for corporate research on AIDS drugs and started acting like a cheerleader for the growing pharmaceutical industry. "Japanese pharmaceutical companies want to compete internationally. We want to back them up to help find a cure for AIDS," says Soichiro Isobe, an official in the pharmaceutical affairs bureau of the Ministry of Health and Welfare. The amount of money the Japanese government is committing to AIDS research and treatment isn't large by Western standards. For the fiscal year ending March 1989, the Ministry of Health and Welfare earmarked 840 million yen ($6.7 million) for AIDS research. But that's nearly six times last year's AIDS budget. The important point is that government's backing gives a signal to otherwise conservative and risk-averse companies. That's good for firms like Ajinomoto Co. The largest integrated food-processing company in Japan, and maker of monosodium glutamate, is trying to branch out into the medical field. Since 1986, Ajinomoto has been marketing lentinan, a polysaccharide extracted from a Japanese mushroom, as an anti-cancer agent. Now, Yutaro Kaneko, an organic chemist at Ajinomoto, and his colleagues are trying to see whether lentinan's immuno-stimulating properties will work on the AIDS virus. The Japanese government backed the idea by picking lentinan as one of five drugs to be studied under national AIDS research projects. But Ajinomoto isn't content to rely solely on resources in Japan. On June 1, it set up a wholly owned subsidiary, Lenti-Chemico Pharmaceutical Laboratory Inc., in New Jersey. And it has hooked up with San Francisco General Hospital and New York AIDS Coalition Hospitals in order to file for U. S. Food and Drug Administration approval for clinical trials of lentinan as an anti-AIDS medicine. Other companies are following Ajinomoto's lead. Dainippon Pharmaceutical Co., Japan's oldest drug maker, opened an office in New York in September. "We want to gather information on appropriate products to export to the U. S. and to introduce into Japan," says Masao Suzuki, director of general affairs at Dainippon Pharmaceutical's Tokyo office. And Nisshin Food Products Co., Japan's leading manufacturer of instant noodle products, recently established a molecular biology institute in Boston to pursue AIDS and other research. Kowa Co., a Nagoya-based drug maker, got involved with AIDS drugs by accident. For years, it produced a drug called dextran sulfate to treat arteriosclerosis and high cholesterol. But in June 1987, two doctors affiliated with Ueno Fine Chemical Co. reported that in test-tube studies, dextran sulfate was an effective antiviral agent against AIDS. Almost overnight, desperate American AIDS patients flooded Kowa with demands for the drug. "This really caught us by surprise," recalls Kazuhiro Endo, a spokesman for the pharmaceutical division of Kowa. Because the drug was not allowed for sale in the U. S., a black market quickly sprang up in Tokyo. This forced the Health and Welfare Ministry to take action: Foreigners can now buy the drug at three designated pharmacies. The drug has been in clinical trials in the U. S. and researchers last June reported mildly encouraging results, especially among healthier patients in a 29-patient study. Many Japanese doctors and researchers, nevertheless, are skeptical that dextran sulfate will prove highly effective against AIDS. But they agree that the international attention the drug attracted did much to wake up other Japanese companies to the potential profits from AIDS drugs. When the ministry offered research funding for corporate AIDS research this year, more than 40 companies rushed to apply. Compared with the U. S., Europe or Africa, Japan has few AIDS patients. As of Sept. 1, the ministry said it knew of 50 Japanese who have died of AIDS, while an estimated 1,048 tested positive as carriers of the AIDS virus. But officials say the numbers actually are higher, with some estimates putting the number of carriers as high as 4,000. Doctors say the majority of Japanese AIDS victims are hemophiliacs who were infected with the virus through imported blood before the Japanese government approved foreign blood-screening methods. Japanese researchers say they don't expect any miracles soon. But if and when they do come up with an effective drug, analysts say they will be forced to turn to foreign markets to develop it. "There just aren't enough patients to do clinical studies here," says Dr. Tohru Tokunaga, director of the AIDS Research Center. [This article is made available here by Dow Jones Co. for the personal and non-commercial use of callers to this bbs, in the hope that it will be of some help to those who are suffering from the disease and others who are seeking to help them.]