Chugai Pharmaceutical Co. is considering producing the influenza drug Tamiflu at the request of the Health, Labor and Welfare Ministry, industry sources said Friday.

Domestic production will help produce stable supplies of the drug in case a flu pandemic hits Japan, which depends on Chugai's imports from Swiss parent F. Hoffmann-La Roche Ltd. for its Tamiflu supply, they said.

The government announced a plan last November to increase Tamiflu stockpiles by 70 percent to cover 25 million people in preparation for a possible outbreak of new flu viruses originating from avian flu.

Japan's complete dependence on imports has been a matter of concern to the government because demand for the drug has been growing worldwide.