SciGen signs US$145m hep B distribution deal

By Helen Schuller
Monday, 10 October, 2005

Singapore-based generics company SciGen (ASX:SIE) has signed a Chinese distribution agreement worth at least US$145 million (AUD$191.6 million) with Hefei Life Science Park Investment & Development (HID) for its hepatitis B product, Sci-B-Vac.

"This is a very significant commercial deal for SciGen," said SciGen CEO Saul Mashaal in a statement. "The sales targets to which HID has agreed are substantive, yet the agreement allows SciGen considerable control over the future of Sci-B-Vac sales and marketing in China."

Under the agreement HID is required to order and pay for a minimum annual quantity of six million doses of Sci-B-Vac, either as dispensed doses or bulk antigen, for a period seven years. Over this period revenues for doses are expected at US$210 million or US$145 if HID chooses to purchase bulk antigen.

Sci-B-Vac is a third generation recombinant hepatitis B vaccine produced in Chinese hampster ovary (CHO) cells (mammalian cell). It contains a mixture of three regions of the hepatitis B virus surface proteins that according to SciGen stimulates a faster immune response than other hepatitis B vaccine presently available.

HID has been appointed as the non-exclusive distributor of Sci-B-Vac to customers in China and SciGen has retained the right to sell the product directly in China or to appoint other distributors.

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