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news.Novavax, a biotechnology company, has formed a joint venture with Cadila Pharmaceuticals to develop, manufacture and market vaccines, pharmaceuticals and diagnostic products in India.
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The joint venture will develop and commercialize Novavax’s seasonal influenza virus-like-particle (VLP)-based vaccine candidate and Cadila’s therapeutic vaccine candidates against cancer as well as its adjuvants, biogeneric and biological diagnostic products for the Indian territory.
Novavax will also contribute technology to the joint venture for the development of several other VLP vaccine candidates against diseases of public health concern in that region, such as hepatitis E and dengue fever. Cadila will contribute approximately $8 million over three years to support the joint venture operations.
The joint venture will be responsible for clinical testing and registration of products that will be marketed and sold in India by the joint venture, which will be owned 80% by Cadila and 20% by Novavax once approval of India Foreign Investment Promotion Board is obtained.
Novavax will have the right to negotiate license arrangements of certain vaccines developed by the joint venture for commercialization worldwide outside of India while also having rights to negotiate for other vaccines for commercialization in the US and several other territories outside India.
This strategic alliance will allow Novavax to utilize Cadila’s research, clinical development, and manufacturing expertise and infrastructure to support development of current and future vaccine candidates. Through a $7.5 million service contract over three years, Novavax will have the opportunity to take advantage of Cadila’s low-cost, high-quality infrastructure to undertake part of the development of its novel vaccines in India to reduce its cash burn and ultimately extend its cash runway.
Rahul Singhvi, president and CEO of Novavax, said: “This alliance offers us the potential to accelerate the development of our product candidates, explore promising new vaccine candidates, and introduce these products to one of the world’s fastest-growing medical markets.
“Cadila’s significant equity investment in Novavax has strengthened us financially and the services agreement with them will be supportive of our ongoing efforts to reduce the cost of developing our pipeline of products.”