GSK Forms JV With Chinese Biotech Firm For Paediatric Vaccines

GlaxoSmithKline (GSK) has entered into a long-term joint venture with Jiangsu Walvax Biotech (Walvax) to develop and manufacture paediatric vaccines for the Chinese market.

Reportedly, the joint venture is to produce measles, mumps and rubella (MMR) vaccine under the brand name – Priorix, and potentially other paediatric vaccines.

The company said that it will further expands GSK’s presence in China and follows GSK’s agreement with chinese biotech company Shenzhen Neptunus Interlong Bio-Techniqu, to develop and manufacture flu vaccines in June this year.

Upon fulfillment of certain conditions, a total of £41.2m will be invested in this joint venture by both the partners. While GSK will initially invest £20.1m, followed by £7.3m in 2015, Walvax will invest a total of £13.8m. Equity interest will be split up as 65% and 35% between GSK and Walvax with provisions to revise both shares in the future.

A manufacturing facility is also to be built under the joint venture to produce Priorix for China’s public vaccine market. Over time, GSK will transfer the technology to enable the venture to manufacture the vaccines locally.

Jean Stephenne, president of GSK Biologicals, said: ”In China, GSK is establishing local production capacity with a vaccine manufacturer and developer, in advance of the significant expansion in the Chinese public vaccine market. Together with Walvax, we can support China’s goals to accelerate vaccination and save children from preventable diseases.”

Liu Hong-Yan, chairman of Walvax, said: “This collaboration will allow Walvax and GSK to produce lifesaving vaccines to help meet China’s need for MMR vaccines. The JV will strengthen our vaccine R&D efforts and build our capacity to increase children’s access to vaccines, one of the most cost-effective health interventions available.”