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| Penicillin: Pharmaceutical Companies: Technical Challenges
 These reasons, coupled with the improvements in the fermentation process, 
          culminated in the penicillin advisory committee's recommendation in 
          late 1945 that the OSRD terminate its contracts with the pharmaceutical 
          firms, the research institutions, and Great Britain. The innovations 
          of the NRRL, discussed in detail in The Federal Bureaucracy section, 
          along with the above-mentioned improvements made by the pharmaceutical 
          industry led to a tremendous increase in penicillin's production and 
          the subsequent reduction in its price. Not only was the effort to produce 
          penicillin synthetically a costly, large-scale endeavor, with the industry 
          spending $3 million and the government spending $270,000, but such efforts 
          yielded minimal amounts of penicillin (Helfand, et al., 48). Therefore, 
          "
based on the extremely low yield of synthetic penicillin, 
          the production of penicillin by synthesis would cost at least 50 times 
          more than the manufacture of natural penicillin" via fermentation 
          (Swann, 181). Given this monetary rationale as well as the end of wartime 
          penicillin needs due to the close of WWII, the OSRD cancelled its contract 
          with the drug companies on November 1, 1945 and with the academic institutions 
          on December 31, 1945. [For possible visuals on the cancellation of these 
          contracts, see the U.S. Federal Trade Commission, Economic Report on 
          Antibiotics Manufacture (Washington, D.C.: Government Printing Office, 
          1958), Appendix 2, "Discovery and Development of Penicillin," 
          302-354 (taken from Swann, 182, note 87).] While several authors argue that the synthesis program served as an obstacle to the mass production of penicillin, others do not recognize the project as a significant impediment. As discussed in The Federal Bureaucracy section, Neushul suggests that because Richards " remained convinced that synthesis was the key to mass production of penicillin," the CMR made minimal financial contributions to the advancement of penicillin production via fermentation despite NRRL advances (Neushul, 382). Albert Elder, the War Production Board's (WPB) "penicillin czar," believed that " the most important deterrent [to the mass production of penicillin] was the tremendous emphasis placed on the synthesis of penicillin by Dr. A. N. Richards and his Committee on Medical Research of the [OSRD]" (Elder, 4). Neushul notes that a November 1943 progress report by James Biller, a WPB investigator, echoed Elder's concerns on Richards's focus on synthesis. The report described the reasons for Squibb's delay in opening a new plant: 
  Belief that synthesis of the drug may be imminent may be 
        contributing to a lackadaisical attitude on the part of some producers 
        who feel that it would be foolish to waste a lot of time and money on 
        a relatively inefficient method of production when large scale production 
        of a synthetic may be just around the  Such delays compelled Elder to obtain in advance the numerous 
        scientific control instruments, filters, air-conditioning equipment, and 
        other items required for penicillin production. He also looked to the 
        Office of Production Research and Development (OPRD) to coordinate the 
        development of higher yield producing strains of penicillin, as described 
        in The Federal Bureaucracy section. In December 1942 the CMR refused to 
        enter into a contract with the Carnegie Institution's Cold Spring Harbor 
        Laboratory, which requested increased funds for its research on the first 
        isolated "super strain"-another indication, Neushul asserts, 
        "
that synthesis and not fermentation was Richards' preferred 
        method of production" (Neushul, 393). Other authors, however, suggest that while Richards and 
        the CMR supported penicillin synthesis, such endorsement was not in place 
        of fermentation. In fact, Helfand, et al. argue that "Richards was 
        one of those who believed originally in the fermentation process" 
        (Helfand, et al., 47). Moreover, although "[the] CMR decided in favor 
        of synthesis, and actively initiated and supported a major program," 
        it simultaneously "
[watched] carefully and [encouraged] the 
        fermentation process
" (Helfand, et al., 47). Swann finds that 
        Elder's statement that Richards placed "tremendous emphasis" 
        on the synthesis program is a "gross overstatement" (Swann, 
        188). "At most," Swann asserts, "Richards helped prolong 
        the program when it should have been terminated, [but] he did not advocate 
        the pursuit of synthesis at the expense of work on fermentation" 
        (Swann, 188). Indeed, no fermentation plants closed in order to focus 
        their attention on synthesis, and the industry spent over $22 million 
        on fermentation plant construction compared to the $3 million on synthesis 
        (Swann, 188-189; Hobby, 191). Although a point of academic debate, the 
        simultaneous inclusion of the synthesis program, coupled with the penicillin 
        growth difficulties discussed above, may have slowed developments to mass-produce 
        penicillin. Nevertheless, the pharmaceutical industry, government, and 
        research science subsequently overcame these obstacles. While the NRRL 
        and research science developed better media and more productive penicillin 
        strains, in 1943 the WPB began funding and facilitating penicillin production. 
        The COC's successes with penicillin at Bushnell and other army hospitals 
        convinced the WPB to become involved in penicillin production, as described 
        in The Federal Bureaucracy section. The WPB, which is discussed in detail 
        in The War Department section, began "
an aggressive expansion 
        of production facilities" under the direction of Elder and Fred Stock, 
        the chief of the WPB's Drugs and Cosmetics Division (Richards, 443). The 
        allocation order on July 16, 1943 placed the penicillin supply in the 
        hands of the WPB, distributing it to the OSRD (CMR), the armed forces, 
        and the U.S. Public Health Service. In the following months, the WPB reviewed 
        175 companies to assist in penicillin production and it selected 21 as 
        "
having the [experience and scientific and technical] capacity 
        to justify [its] financial assistance" (Richards, 443). Pfizer's 
        efforts at penicillin production via submerged fermentation began to yield 
        results in early 1943, and by early 1944 it had successfully converted 
        to deep tank fermentation. Other firms followed suit, such that whereas 
        in June 1943, 425 million units of penicillin were produced, 646 billion 
        units were produced by June 1945 (Helfand, et al., 50). [Richards, 444 
        has a chart that reveals the increase in penicillin production within 
        the context of WWII events and production advances. Smith and Worthen, 
        186, have a picture of Pfizer receiving an "E" Award in 1943, 
        demonstrating the link between the pharmaceutical industry, the armed 
        forces, and the government.]  | 
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