GSK and Neptunus sign joint venture agreement for the co-development of flu vaccines

GlaxoSmithKline (GSK) has signed an exclusive co-operation agreement with Shenzhen Neptunus Interlong Bio-Technique (NIBT) as a preliminary step in forming a joint venture between the two companies.

The agreement outlines the proposed terms for establishing a jv company, which will seek to co-develop seasonal influenza vaccines and pre-pandemic/pandemic influenza vaccines, firstly targeting against strains of the virus specific to China, Hong Kong and Macau.

Formation of the jv company will remain conditional until a number of conditions are fulfilled. Upon formation. GSK expects to make a cash contribution of approximately US$31m (Euro 24m) in return for a 40% stake in the jv, while NIBT will contribute the equivalent of $47m (Euro 37m) in assets. Within five years of the establishment of a jv, GSK has the option to increase its equity interest to a majority position.

"This collaboration marks another step in our strategy to build our vaccines presence in critical emerging markets, such as China," said .Jean Stephenne, president and general manager of GlaxoSmithKline Biologicals. "The joint venture will combine the potential of GSK's adjuvant technology and expertise in vaccine development together with NIBT's extensive experience of the Chinese vaccines market and make use of their access to specific local influenza antigens. "

GSK Biologicals is a leading vaccine manufacturer and has a global presence with established sites, alliances or jvs in 14 sites worldwide to date.