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PowderJect Pharmaceuticals Sees Stock Market Value Jump by Third Following Glaxo Wellcome Collaboration

Strategic Insights

— 1 min read

The announcement of a wide-ranging deal between PowderJect Pharmaceuticals and Glaxo Wellcome has sparked a significant increase in the stock market value of PowderJect. The collaboration, which is potentially worth over $300 million, involves the development of a new generation of vaccines based on firing DNA into human cells. PowderJect's chairman and chief executive, Paul Drayson, stated that this deal is Europe's largest pharmaceutical research and development collaboration, and that genetic vaccines may prove cheaper and safer than existing products.

Key Takeaways:

  • PowderJect Pharmaceuticals' stock market value jumped by a third after announcing a collaboration with Glaxo Wellcome to develop new vaccines.
  • The agreement covers 11 vaccines and is potentially worth over $300 million to PowderJect, even before accounting for royalties on future sales.
  • PowderJect's shares increased from 314 1/2 p to 418 1/2 p, valuing the company at nearly £250 million.
  • Glaxo Wellcome acquired the rights to a prophylactic version of a hepatitis B vaccine and options over a therapeutic version, with initial licence and option fees of £2.4 million and investment of £12.1 million to buy a 7.7% stake in PowderJect.
  • The PowderJect device uses microscopic gold particles, accelerated to 1,400 mph, to carry DNA into cells, which may reduce the amount of vaccine required to one thousandth of that needed if given by injection.
  • Dr. Drayson stated that delivering DNA directly into skin cells could increase the safety and reduce the cost of vaccines.

Statistics:

  • PowderJect's stock market value increased by 33% after the announcement of the collaboration.
  • The potential value of the agreement is over $300 million (Pound 182 million).
  • PowderJect's share price increased from 314 1/2 p to 418 1/2 p, valuing the company at nearly £250 million.
  • The Oxford University's holding in PowderJect increased in value to £12.8 million.
  • Glaxo Wellcome invested £12.1 million to buy a 7.7% stake in PowderJect at 246p a share.
  • The lead product, a hepatitis B vaccine, has completed a phase I safety study in the US with successful results.

Sources:

  • "Copyright (C) The Times, 1998"

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