) has several contracts in its kitty to supply products including
antibiotics, cephalosporins and penicillins to contract
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The Biomedical Advanced Research and Development Authority
(BARDA), a part of the U.S. Department of Health and Human
Services (HHS), has entered into a four-year contract with Glaxo
to purchase raxibacumab for combating a potential bioterrorist
attack. As per the terms of the deal, Glaxo will supply 60,000
doses of raxibacumab to the government over four years for
approximately $196 million.
In Dec 2012, raxibacumab was approved by the U.S. Food and Drug
Administration (FDA) for inhalational anthrax caused by bacillus
anthracis in patients (both adult and pediatric) in combination
with appropriate antibacterial drugs and for the prevention of
inhalational anthrax when other therapies are not available or
Raxibacumab was initially developed by the BARDA and Human Genome
Sciences, which was later acquired by Glaxo.
We note that raxibacumab is the first monoclonal antibody to be
cleared by the FDA using the Animal Efficacy Rule. The rule
facilitates the approval of candidates solely on the basis of
efficacy data from animal trials, when it is not possible to
conduct studies on humans.
Glaxo, a large cap pharma company, carries a Zacks Rank #3
(Hold). We are pleased with Glaxo's pipeline development efforts.
A number of pipeline-related news is expected in the coming
quarters. Given the declining sales from generic competition, we
believe Glaxo's pipeline must deliver.
At present, large-cap pharma companies like
) look well-positioned. While Roche is a Zacks Ranked #1 (Strong
Buy) stock, Novo Nordisk and Bayer carry a Zacks Rank #2