Under the terms of the contract, Acambis will establish a US-based manufacturing capability for ACAM2000, deliver against Centers for Disease Control and Prevention (CDC) orders for a minimum of nine million doses per annum for the eight years from year three to year ten of the contract and undertake activities to maintain its product license.
Acambis will establish a US-based manufacturing capability by transferring the ACAM2000 production process to Acambis’s facilities in Canton, Massachusetts and Rockville, Maryland.
The CDC will procure at least nine million doses of ACAM2000 a year in contract years three to ten. The structure of the contract allows the CDC to purchase up to 39 million doses in contract years five to ten, should the need arise. This would increase the headline value of the contract to around $660 million. For the dose-delivery activities, Acambis will receive payment on a fixed-price basis.
In addition, Acambis will undertake license maintenance activities throughout the life of the contract on a cost-plus-fixed-fee basis. In the initial years, this includes conducting a Phase IV study in US military personnel, establishing an enhanced surveillance program and myocarditis registry to monitor the safety profile of the vaccine, and undertaking a bridging trial to support a license amendment for transfer of bulk production to its Canton, Massachusetts facility.
Of the $425 million revenues, approximately two-thirds relates to the delivery of doses in contract years three to ten, and one-third to license maintenance activities.