Merck Vaccine Gets a Boost

Merck(MRK Quote) has picked up a valuable endorsement for its Zostavax shingles vaccine from a federal medical advisory group.

Although the vaccine was approved by the Food and Drug Administration in May, Zostavax will gain more clout among doctors and insurers thanks to Wednesday's endorsement by the Advisory Committee on Immunization Practices. The committee, which consists of experts in immunization and other fields, advises the federal Centers for Disease Control and Prevention.

The committee's vote was unanimous for the vaccine aimed at adults age 60 and older. Shingles is a condition characterized by painful itching, burning and tingling and a blistering rash. Zostavax is the only shingles vaccine.

"While a number of health plans are already offering insurance coverage of Zostavax, the panel's recommendation is likely to further increase coverage of the vaccine," said Dr. Mark Feinberg, a vice president for Merck's vaccine division.

Merck said the committee's recommendations "do not result in requirements for vaccine coverage by insurers; however, private insurers typically follow the committee's guidance."

The committee meets periodically to discuss vaccines and public health issues. Its recent support of Merck's Gardasil, a vaccine against the virus that can cause cervical cancer, was seen by analysts and the company as an important development for sales.

As with all committee recommendations, the Zostavax comments will be reviewed by the CDC and the Department of Health and Human Services, which has the final say. The guidelines become official when they are published in a weekly CDC publication.