PharmAthene to acquire Avecia's biodefense vaccines business
US-based company PharmAthenea, a specialist in the development and commercialisation of medical countermeasures against biological and chemical threats, is to acquire all of the assets and intellectual property related to Avecia's biodefense vaccines business.
US-based company PharmAthenea, a specialist in the development and commercialisation of medical countermeasures against biological and chemical threats, is to acquire all of the assets and intellectual property related to Avecia's biodefense vaccines business.
Avecia Biologics, based in Tees Valley in the UK, is a contract manufacturer of biopharmaceuticals. Its services include a second-generation recombinant Protective Antigen (rPA) anthrax vaccine, a recombinant dual antigen plague vaccine, and a third generation rPA anthrax vaccine programme. As part of this agreement, PharmAthene and Avecia Biologics have entered into a long-term manufacturing contract for the supply of these vaccine drug substances to PharmAthene.
PharmAthene president and ceo David P. Wright, said: "Our acquisition of Avecia's biodefense vaccine assets significantly advances PharmAthene's strategy of building a leading biodefense company with a comprehensive portfolio of medical countermeasures that specifically meet the requirements for procurement established by the US government. Importantly, the rPA anthrax vaccine presents a promising near-term procurement opportunity for PharmAthene based upon a recently issued government solicitation outlining requirements to procure 25 million doses of an rPA vaccine."
Avecia's vaccine technologies were acquired from the Defence Science and Technology Laboratory (Dstl), part of the UK Ministry of Defence.
Under the sale and purchase agreement, PharmAthene will acquire all of the assets and intellectual property related exclusively to Avecia's rPA anthrax vaccine programmes and plague vaccine programmes. Approximately 50 employees from Avecia's UK office will transfer to PharmAthene but remain based in the UK. In consideration for these assets, PharmAthene will provide to Avecia a cash payment of $20m, which comprising $10m at closing and $10m within twelve months from the date of closing of the acquisition. In addition, Avecia will be eligible to receive milestone payments totaling $20m in the aggregate, contingent upon receipt of procurement contracts for the anthrax rPA vaccines and the plague vaccine, and royalties on sales to the U.S. government.
"We believe that under PharmAthene's ownership the prospects for these vaccines will be further enhanced. As continuing manufacturers of the drug substance, this is to the advantage of Avecia's core contract manufacturing business. The sale will focus all Avecia's activities on its core areas of contract manufacture of microbial biologics and oligonucleotides," said Avecia ceo Adrian Buckmaster.