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TOP NEWS
GlaxoSmithKline
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 12/10/2009
[Company watch]
GlaxoSmithKline Forms Vaccine JV for the China Market
GlaxoSmithKline has formed a JV with Jiangsu Walvax Biotech Company to develop and manufacture pediatric vaccines for the China market. Initially, the JV will be funded with $65.6 million of capital, of which $32 million (65%) will come from GSK. GSK has also agreed to provide an additional $11.6 million in 2015. The agreement contains provisions allowing both companies to increase their stakes in the future.
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GlaxoSmithKline has formed a JV with Jiangsu Walvax Biotech Company to develop and manufacture pediatric vaccines for the China market. Initially, the JV will be funded with $65.6 million of capital, of which $32 million (65%) will come from GSK. GSK has also agreed to provide an additional $11.6 million in 2015. The agreement contains provisions allowing both companies to increase their stakes in the future.
GSK will transfer technology into the JV, which will begin operations by producing Priorix, GSK’s pediatric vaccine for measles, mumps and rubella (MMR). The JV will build a new manufacturing facility, and it plans to extend its operations to include other pediatric vaccines over time.
Jean Stephenne, President of GSK Biologicals, GSK’s vaccine division, positioned the new JV as part of GSK’s attempt to form innovative partnerships to develop and deliver vaccines to the worldwide market. The increased interest in China is taking place just as China begins upgrading its public health initiatives. The goal of the new JV is to supply vaccine to China’s public vaccine market.
In June of this year, GSK announced another vaccine JV, this one with Shenzhen Neptunus Interlong Bio-Technique Co. Ltd., which will concentrate on flu vaccines for the China market. GSK invested $34 million in cash and assets for a 40% stake in the JV. GSK can make additional investments over the next two years to gain majority control.
In July, GSK partnered with Dr. Reddy\'s Laboratories (NYSE: RDL) to sell Dr. Reddy’s generic pharmaceutical products in emerging markets. That arrangement was similar in its goals (though not its structure) to a deal struck last year with South African generic drug manufacturer Aspen PharmaCare. In this latter relationship, GSK has the right to license drugs from Aspen’s portfolio, which GSK will then seek to have approved in specific markets. Aspen produces anti-retroviral treatments for AIDS that may have been the main attraction for GSK.
Jiangsu Walvax is an affiliate of Yunnan Walvax Biotech Co., Ltd., China’s second largest manufacturer of Haemophilus influenza type b (Hib) conjugate vaccine. Formed eight years ago, Walvax has more than 400 employees. Walvax has expertise in freeze-drying technologies, which facilitate vaccine preservation and transportation. Jiangsu Walvax was launched in April of 2009 to develop viral vaccines in Taizhou, Jiangsu Province.
In 2002, China pledged to eradicate measles by 2012. China’s Ministry of Health incorporated MMR vaccine into its Expanded Program on Immunisation (EPI) in 2008. |
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