PharmAthene acquires Avecia biodefense vaccines business

Under the agreement, PharmAthene has acquired all of the assets related exclusively to Avecia’s vaccines business, including the intellectual property rights associated with its recombinant Protective Antigen (rPA) anthrax vaccine and plague vaccine as well as certain government contracts related to such products having an estimated value of approximately $60 million. Approximately 50 employees from Avecia’s vaccines operations have transferred to PharmAthene in connection with the transaction.

In consideration for these assets, PharmAthene has paid Avecia a cash payment of $10 million, which is subject to a post-closing working capital adjustment, and will pay an additional $7 million within 18 months from the closing date. In addition, Avecia will be eligible to receive milestone payments totaling up to $23 million in the aggregate, contingent upon the achievement of certain milestones related to the award of contracts for development and procurement of Avecia’s vaccine products by the US government, and potentially royalties if certain sales levels are achieved.

The companies have also entered into various agreements for the transitional and longer-term supply of facilities, support and services by Avecia to PharmAthene. Among these agreements are a master services agreement pursuant to which Avecia has agreed to provide process development, analytical development, production, disposition, and stability testing of vaccines for PharmAthene. Under a supply agreement, Avecia has agreed to manufacture and supply to PharmAthene its requirements for the rPA anthrax and plague vaccines.