Specialty pharmaceutical company,
), recently signed a license agreement to gain an exclusive
manufacturing right to VaxInnate Corporation's pandemic influenza
vaccine candidate in the U.S. Financial terms of the deal were
The company is optimistic about this latest endeavor with the
above mentioned candidate, which is a recombinant vaccine with
the potential to be produced in short time at high yields and
with minimum cost. In this regard, Emergent stated that the
license has allowed the company to fulfill the requirement to
acquire a pandemic influenza vaccine candidate under its contract
with the Biomedical Advanced Research and Development Authority
(BARDA). Notably, VaxInnate will continue developing its pandemic
influenza vaccine candidate under its current BARDA contract.
Earlier in 2010, Emergent had entered into a five-year
contract with BARDA to finalize the development and obtain the
regulatory approval for large-scale manufacturing of the BioThrax
vaccine. In June 2012, the company received a contract from BARDA
to establish a Center to facilitate the advanced development of
chemical, biological, radiological and nuclear medical counter
measures, to develop the domestic pandemic influenza vaccine
manufacturing surge capacity, and to provide the workforce
development training programs to address the U.S. government's
preparedness priorities and needs.
The contract consists of an 8-year base period of
performance with a funding of approximately $160 million. Under
the contract, Emergent's obligations include securing a pandemic
influenza vaccine candidate and obtaining access to all necessary
intellectual property rights for the process development and
manufacturing, expanding current facilities to support production
of a pandemic influenza vaccine and additional counter measures,
and obtaining facility licensure to manufacture a pandemic
influenza vaccine at its Baltimore facility.
Thus, Emergent is hopeful about this recent agreement with
VaxInnate, which according to the company is a step forward to
satisfy its commitment to BARDA. Apart from BARDA, the company
also received contracts and grant funding from the National
Institute of Allergy and Infectious Diseases (NIAID) for several
development programs. However, the company faces a fiercely
competitive market in the area of biodefense and commercial
vaccines from major peers like
The stock retains a Zacks #3 Rank (Hold) in the short term.
Over the long term we are 'neutral' on Emergent.
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