Panacea Biotec & Cambridge Biostability, UK sign Joint Venture & licensing Agreement
Panacea Biotec Ltd has informed BSE that, Cambridge Biostability Ltd ("CLB" or "Cambridge Biostability"), the UK pioneering developer of temperature-stable liquid vaccines and the Company have announced that they have entered into a joint venture ("JV") agreement. Under the terms of the JV, the Company has taken a 10% stake in Cambridge Biostability, for a total consideration of £ 1.935m.
In addition, Mr Rajesh Jain, Joint Managing Director of the Company, has been appointed to the Board of CBL as non-executive director. Mr Rajesh Jain is highly experienced in the field of vaccines.
Cambridge Biostability has also signed a long term licensing agreement with the Company that could provide significant gross royalty income to CBL over the period. Under the agreement, the Company is to in-license CBL’s stable liquid technology to develop, produce and market a stable liquid version of pentavalent and other combination vaccines for the treatment of diptheria, tetanus, pertussis (whooping cough), hepatitis B and haemophilus influenza B (a major cause of bacterial meningitis and pneumonia in children). This product will be unique in that it will not require storage under refrigeration or reconstitution before use.
The strategic investment in Cambridge Biostability gives the Company more insight into CBL’s proprietary technology, its ongoing development and application in other vaccines and fields.
The size of the worldwide market for the above vaccines is estimated to be in the region of 300 million doses per annum. Key customers ore UNICEF, PAHO, other supranational organizations and national governments with whom the Company has built long-standing relations. UNICEF alone purchases between USD 370-400 million of these vaccines annually and it is estimated that a pentavalent thermostable vaccine from the Company has current market potential of over USD 135 million. It is expected that the Company will commence clinical trials of the stable liquid pentavalent vaccine in 2008 with a global product launch expected in 2010. (Source: UNICEF Pre-tender suppliers meet May 2006 at Copenhagen).
Mr Rajesh Jain, Joint Managing Director, of the Company said, "Our joint venture and strategic investment with Cambridge Biostability strengthens our relationship with them and gives Panacea Biotec more insight into the development and application of thermostabilisation technology. CBL’s stable liquid technology removes the need for cold chain, which currently costs around USD 200 million a year. It also extends the shelf life of vaccines thereby saving around USD 100 million in waste vaccines every year. The launch of a stable liquid pentavalent vaccine will be a significant milestone and growth driver for both partners."
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