Chiron's bid to acquire PowderJect gathers pace
California-based Chiron Corporation has increased its shareholding in UK-based vaccines company PowderJect Pharmaceuticals to almost 4% of the total outstanding ordinary shares, following the launch of its recommended cash tender offer on 19 May.
California-based Chiron Corporation has increased its shareholding in UK-based vaccines company PowderJect Pharmaceuticals to almost 4% of the total outstanding ordinary shares, following the launch of its recommended cash tender offer on 19 May.
Assuming the acquisition goes ahead, the combined companies will be the world's second-largest provider of flu vaccines - Chiron is currently the fifth-largest and PowderJect occupies sixth place. The two companies had a combined total annual revenue in excess of US$1.5bn (€1.3bn) for the year to March 31, 2003.
PowderJect's product, Fluvirin, is a leading flu vaccine in the UK and is one of only two available injectable flu vaccines in the US. Chiron also enjoys a prominent position in Europe: with its three brands - Agrippal S1, Begrivac and Fluad - it is currently the second-largest producer of flu vaccines outside the US. The combination of Chiron and PowderJect is also expected to provide a stronger platform for new products, including Chiron's flu cell culture vaccines, meningococcal vaccines and novel vaccines for viral infections currently in development, to be introduced in the US.
As well as an enhanced flu franchise, the combination of Chiron and PowderJect will also complement Chiron's wider vaccines portfolio at a time when Chiron's r&d pipeline matures toward the launch of high-value products. Chiron also offers paediatric vaccines, while both Chiron and PowderJect offer a range of travel vaccines.
PowderJect's FDA-approved manufacturing facility at Liverpool is one of the largest flu vaccines manufacturing facilities in Europe, and together with PowderJect's facility in Sweden, will complement Chiron's existing manufacturing operations.
'We consider PowderJect to be an excellent strategic fit,' said Howard Pien, ceo and president of Chiron. 'This deal will help us to achieve our goal of expanding our global vaccines business quickly in the US while building on our platform for new products. In addition to allowing us to enter the US business for vaccinations for flu, the combination with PowderJect will expand our manufacturing capabilities.'