VaxGen intends to fund proof-of-concept studies during the next 12 months and has an exclusive option to continue product development if the studies yield promising results.
The initial proof-of-concept phase will be undertaken jointly by EndoBiologics and VaxGen, with VaxGen providing research funding to EndoBiologics and conducting preclinical testing of the vaccine candidate.
If VaxGen exercises its option to continue developing the vaccine candidate after the proof-of-concept studies, the company would provide milestone payments and additional research funding to EndoBiologics. VaxGen would also provide EndoBiologics with royalty and additional milestone payments upon regulatory approval and commercial sale, if those events are forthcoming.
“A safe and effective Meningitis B vaccine would provide a major advance in improving the health of our children,” said Dr Lance Gordon, VaxGen’s president and CEO. “A great deal of work remains to be done and there is no assurance of success, but having carefully evaluated various approaches to developing a Meningitis B vaccine, VaxGen believes that EndoBiologics has developed a promising technology.”