Friday, November 21, 2008

GlaxoSmithKline to enter flu vaccine JV in China

GlaxoSmithKline to enter flu vaccine JV in China

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GlaxoSmithKline said it has signed an exclusive cooperation agreement with Shenzhen Neptunus Interlong Bio-Technique Co. Ltd. (NIBT) as a preliminary step in forming a joint venture between the two companies which will seek to co-develop seasonal influenza vaccines and pre-pandemic/pandemic influenza vaccines.


The venture will firstly be targeting strains of the virus specific to China, Hong Kong and Macau, the group said in a statement.


GSK expects to make a cash contribution of approximately US$31 million in return for a 40 percent stake in the joint venture, whilst NIBT will contribute the equivalent of US$47 million in assets. Within five years of the establishment of a JV, GSK has the option to increase its equity interest to a majority stake in the venture.

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