Nabi Initiates Phase I/II Trial For Two Antigens In PentaStaph Vaccine

Nabi Biopharmaceuticals (Nabi) has initiated a Phase I/II clinical trial for two of the antigens in the PentaStaph vaccine candidate, which is now owned by GlaxoSmithKline Biologicals (GSK).

Reportedly, as a result of the initiation of the trial, Nabi is eligible for and has invoiced GSK $5m for successful completion of the milestone due under the agreement governing Nabi’s sale of PentaStaph (Pentavalent S. aureus Vaccine) and related assets to GSK.

The company said that the milestone payment was contingent on initiation of the Phase I clinical trial for two PentaStaph antigens, that target the most virulent toxins produced by the bacteria.

PentaStaph was sold to GSK for a total consideration of $46m, including $26m associated with accomplishing four milestone tasks. The remaining $21m in payments contemplated in the transaction are associated with three milestones, which the company expects to complete within the next 14 months. The remaining milestones include completion of the Phase I trial, the successful transfer of specified materials and the successful transfer of technology.

Nabi has received a cash payment of $21.5m when the transaction closed in November 2009 that included $20m associated with the 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.

Raafat Fahim, president and CEO of Nabi, said: “I am very pleased with our progress toward realising the significant value of the PentaStaph asset sale. In one month since we successfully closed the transaction, we completed the first milestone under the sale agreement. We look forward to fully realising the remaining $21m of milestone payments.”