Nabi Biopharmaceuticals has completed the sale of PentaStaph (Pentavalent S. aureus Vaccine) and related assets to GlaxoSmithKline (GSK), which was announced in August 2009.
Under the terms of the agreement, the company will receive cash payments of $21.5m of which $20m is associated with the PentaStaph transaction close, $1m associated with the sale of a separate pre-clinical program for a vaccine against S.epidermedis, and $0.5m as reimbursement for license fees and clinical materials previously manufactured for use in the phase I trial.
Nabi said that the remaining $26m in payments considered in the transaction are associated with the completion of four milestones that it expects to complete within the next 16 months. These remaining milestones include initiation and completion of the phase I trial, the transfer of specified materials and technology.
In connection with the sale, Nabi agreed to provide services to GSK related to the conduct of the phase I trial and the transfer of the Staph program in exchange for reimbursement of its expenses, the company said.
Raafat Fahim, president and CEO of Nabi, said: “The completion of this transaction marks another significant step in our strategic alternatives process. We remain focused on our strategic alternatives including advancing strategic partnering discussions for the continued development and future commercialization of NicVAX, our proprietary smoking cessation vaccine for treatment of nicotine addiction and prevention of smoking relapse as well as a sale or merger of the company.”