With big pharmaceutical companies looking to load their pipelines and biotechnology firms looking for capital to keep afloat, licensing deals between the two are a mainstay of the industry. And as such, not every deal gets a mention here. But a transaction announced Tuesday involving Novavex Inc. (NASDAQ:NVAX) and the Spanish drugmaker Laboratorios Farmaceuticos Rovi (ROVI) is worth highlighting for a couple of reason.
For one, Novavax's technology is designed to make it easier and quicker to manufacture flu vaccines. And with concern about swine flu and other dangerous strains high, the company has gotten lots of attention, including from the Spanish government. Which is another reason worth noting the deal.
Under
terms of the transaction, ROVI will take a $3 million equity stake in the Rockville, Md., biotech and will use its technology to develop and market pandemic and seasonal flu vaccines exclusively in Spain and Portugal, and nonexclusively in Europe, Latin America and Africa. In addition, the Spanish government will kick in about $84 million to fund late-stage approval of the vaccines and to market them in Europe.
Novavax is a developmental-stage biotech, meaning it has no marketable products. The transaction delivers a much-needed capital infusion to the company, which like
other biotechs is striking deals to keep development funds flowing. It will retain exclusive licensing rights for the vaccines
in North America, Asia and Australia and will receive royalty and
milestone payments once the vaccines are approved.
- Suzanne Stevens
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