News | December 11, 1998

BioChem Pharma, SmithKline Beecham Finalize Flu Vaccine Agreement

BioChem Pharma Inc. (Laval, Quebec) and SmithKline Beecham (SKB; London, UK) have finalized the terms of their alliance covering BioChem's novel influenza vaccine technologies, including its cell-derived injectable vaccines and nasal delivery systems. This agreement covers nasal delivery technology licensed by BioChem from privately-owned Biovector Therapeutics (Toulouse, France) SA in 1997.

Electron micrograph of the influenza virus.

The deal covers two separate projects: new delivery methods for flu vaccines derived from cell culture, and intranasal delivery. Both are expected to make a significant impact in the flu vaccine market. The BioChem/Biovector manufacturing method replaces classical egg-based vaccine generation, opening up flu vaccines to individuals who are allergic to egg proteins. Cell culture is also more reliable and should allow shorter production lead times than egg culture. This will reduce the likelihood that a flu epidemic will catch the world by surprise.

The Agreement

After a period of joint development funded by both parties, BioChem and SKB will co-market intranasal vaccines in the United States. SKB retains exclusive marketing rights in Europe and the rest of the world. In addition SKB will manufacture the products everywhere except Canada, where BioChem Pharma retains all exclusive rights to the vaccines, including production and marketing. The agreement also calls for BioChem Pharma to receive upfront and milestone payments from SKB, beginning immediately.

Intranasal vs. Injected

Intranasal delivery represents the future for vaccines since they provide broader access to children, those with a fear of needles, and to people in developing nations who may not have a physician or nurse available to administer an injection. Since flu viruses are often transmitted by inhalation, it is believed that initiating the immune response in the nasal passages will improve efficacy by creating an immunologic barrier to the bug. The key to obtaining immunity from intranasal delivery, however, will be developing the right adjuvant, which is SKB's area of expertise.

"We are very pleased to have finalized this significant agreement covering our influenza vaccine portfolio with SmithKline Beecham Biologicals," said Francesco Bellini, CEO of BioChem Pharma. "We feel that coupling of our cutting-edge production technology with SKB's adjuvants—not to mention their development and commercialization expertise in vaccines—is a formula for success."

Influenza Market

The influenza market is large and growing. Influenza is a major cause of illness and death, striking an estimated 70-150 million people and causing more than 125,000 deaths in North America and Europe alone each year. With the increased aging of the population, the vaccination market is expected to grow. The best and most cost-effective protection against influenza is annual vaccination.

By Angelo DePalma

For more information: Francesco Bellini, CEO, BioChem Pharma, 275 Armand-Frappier Blvd., Laval, Quebec H7V 4A7, Canada. Tel: 514-978-7771. Fax: 514-978-7755.