Biodiem licenses flu vaccine

BioDiem (ASX: BDM) has licensed its cell-culture production influenza vaccine to Dutch group Nobilon, part of Akzo Nobel's pharma group, for USD$8 million including milestone payments.

Under the agreement, Nobilon will have exclusive rights to manufacture, market and sell the intranasal live flu vaccine worldwide, excluding Russia and the Commonwealth of Independent States, where St Petersburg's Institute of Experimental Medicine has the rights, and North America.

"In the US, BioDiem retains its rights with the intention of finding a significant partner there," said BioDiem managing director Tom Williams.

In Japan, the rights for sales and marketing will be shared between BioDiem and Nobilon, subject to a future agreement between the two companies.

Williams said Nobilon would be responsible for developing and registering the vaccine in the European and other markets it has rights for. It marks a strategic move by Nobilon into the human vaccine market.

"We are delighted to have Nobilon as a partner for our novel flu vaccine as the fit is excellent and provides both companies with a strategic position in a high volume market which is growing strongly," Williams said.

He noted that, with the current problems with flu vaccine supply in the US market, combined with US government support for the development of alternative egg-free production methods for the vaccine, an increased number of players was likely to emerge in the vaccine industry.

"There is going to be a very large market with room for several players," Williams said.

But there is a way to go before BioDiem's vaccine hits the market -- the company estimates it will take until 2010.

At the time of writing, BioDiem's shares were trading five per cent higher than yesterday at AUD$0.79.