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Biotechnology industries

Biotechnology Companies Capitalize on Influenza Vaccine Shortfall

Strategic Insights

— 1 min read

The US market's current influenza vaccine shortage created by Chiron's manufacturing problems has led to a significant increase in funding for biotechnology companies developing new vaccines. Local player BioDiem is making inroads in the area after announcing its first milestone payment from Nobilon, a subsidiary of Akzo Nobel. This deal grants Nobilon world rights to manufacture BioDiem's live flu vaccine, while also providing BioDiem with a cost-free vaccine development process and potential earnings through royalties.

Key Takeaways:

  • BioDiem has secured a deal with Nobilon, granting the subsidiary world rights to manufacture BioDiem's live flu vaccine.
  • The agreement includes a $US1 million sign-on fee, with BioDiem expected to receive $US8 million in milestone payments and royalties on eventual sales.
  • The deal allows BioDiem to pursue a North American marketing partner for its vaccine.
  • The worldwide market for flu vaccines is expected to grow to $US4 billion in a few years.
  • BioDiem's royalty potential from the deal could exceed $US30 million per year.
  • BioDiem shares rose 1 A to 58 A cents following the announcement.

Statistics:

  • Biotechnology companies have received increased funding from the US National Institute of Health to develop new vaccines.
  • Three global pharmaceutical companies have products in late-stage development for flu vaccines.
  • The worldwide market for flu vaccines is projected to reach $US4 billion in a few years.
  • BioDiem's potential earnings from royalties could exceed $US30 million per year.
  • The US market's current influenza vaccine shortage has led to Chiron's withdrawal from the market.

Sources:

  • Bloomberg (article title not specified)

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