BioDiem banks first royalty cheque from Indian H1N1 vaccine deal

Melbourne biotech BioDiem has reported the receipt of the first royalty payments to stem from a licencing agreement signed earlier this year for the sale of its Nasovac vaccine for H1N1 (swine flu).

The payment of $248,310 for private market sales follows agreements between Nobilon (Schering-Plough's human vaccine business), the World Health Organisation (WHO) and the Serum Institute of India to supply Nasovac in India.

Nasovac is based on BioDem’s live attenuated influenza vaccine (LAIV) technology. Launched in India in July, the product had previously only been approved for sale in Russia and the Commonwealth of Independent States (CIS), a group of states formed after the collapse of the Soviet Union.

The Serum Institute of India holds a sublicence from the WHO for the public market under the WHO’s Pandemic Flu program. The purpose of the program is to better enable developing countries to quickly manufacture and supply vaccines in response to pandemic-influenza.

“We are delighted to receive our first royalty payment under this agreement between Nobilon and the World Health Organisation related to the use of the LAIV technology in India,” said BioDiem CEO, Julie Phillips.

She added that the company is very positive about forming a relationship with the Serum Institute of India, an organisation which supplies over 24 vaccine products to more than 140 countries.

“The take-up and acceptance of Nasovac in the Indian market reflects the need for technology such as LAIV, and is good news for BioDiem.”

The announcement failed to impress investors today, however, BioDem’s shares shedding half a cent to close at $0.13.