Shire to sell vaccines business to ID Biomedical Corporation

UK-based Shire Pharmaceuticals Group has agreed to sell its vaccines business to ID Biomedical Corporation, a Canadian biotechnology company, for a consideration of US$120m.

Two equal instalments of $30m will be received in cash, one at closing and the other on the first anniversary of completion of the transaction. The remaining $60m will be received in common shares of IDB, or in cash in the first 22 months following closing.

In return, Shire will provide a US$100m loan facility, which can be drawn down over the next four years, to help fund the development of injectable flu and pipeline products within the vaccines business. The loan will be repayable out of income generated by IDB on future non-Canadian injectable flu and other pipeline sales.

Shire announced its intention to exit the vaccines business in July 2003 following a strategic review, which refocused the company on fewer projects at a later stage of development, as well as marketed products. The vaccines business is no longer core to the Shire's global strategy, and upon completion of this transaction Shire will be exclusively focused on therapeutic products meeting the needs of specialists doc-tors.

'We are making good progress with our new strategy and this announcement is a significant step,' said Shire chief executive Matthew Emmens. 'The vaccines business has a good pipeline of products in early stage development and IDB is an ideal partner to take this business further.'

The vaccines business, currently known as Shire Biologics, is active in research, development, manufacturing and commercialisation of human vaccines. Its portfolio includes two marketed products: Fluviral for influenza and NeisVac-C for meningitis C in Canada, as well as a pipeline of product candidates in streptococcus pneumonia, neisseria meningititidis, group B streptococcus and group A streptococcus. In 2003, the vaccines business generated revenues of $24.8m and a net operating loss of $21.9m.

Vaccine assets being acquired by ID Biomedical from Shire include a 120,000ft² influenza vaccine manufacturing and fill/finish plant in St Foy, Quebec that is currently being expanded to 200,000ft². When the expansion is completed, manufacturing capacity from the St Foy facility is expected to increase to more than 40-50m doses per year.

Also included is a 68,000 ft² Vaccine Research Centre currently under construction in Laval, Quebec, as well as a 60,000ft² fully integrated vaccine development and pilot manufacturing facility in Northborough, Massachusetts.

The sale is subject to government and regulatory approvals, but is expected to complete by the end of June.