Novavax has signed initial agreement with Spanish Government to license proprietary, recombinant virus-like-particle (VLP) vaccine technology, to Rovi of Spain.
Rovi will use the VLP technology to create a comprehensive influenza vaccine solution for the Spanish government, under a new E60 million program. It is sponsored by the Spanish Ministry of Health and other government groups to develop pandemic and seasonal flu vaccines, and establish its only in-border facility.
Under separate agreements that are in the process of being negotiated by both companies, Rovi would receive exclusive licenses to Novavax’s portable VLP vaccine technology to commercialize flu vaccines in Spain and Portugal, and non-exclusive licenses in Europe, Latin America and Africa.
In addition, under a stock purchase agreement Rovi has committed to make a $3 million equity investment in Novavax at $2.74 per share, a 10% premium to the June 29, 2009 closing bid price.
Moreover, a non-profit Foundation, jointly sponsored by Rovi and the Spanish authorities, will be formed to support Phase III clinical development and other studies. In addition, the State of Andalucia will support Rovi in building a new VLP vaccine plant in the city of Granada and bring it on-line in 2012, at a cost of approximately E20 million.
Rahul Singhvi, President and CEO of Novavax, said: “We are honored to be selected by the Spanish Health Ministry and Rovi Pharmaceuticals to help develop pandemic and seasonal flu vaccine solutions for Spain. This influenza vaccine supply solution consisting of our VLP technology and portable manufacturing avoids the use of chicken eggs, creates vaccines for emerging strains faster, and promises less expensive, in-border manufacturing capacity. We continue to discuss opportunities with other pharmaceutical companies and governments to implement this compelling influenza vaccine technology around the globe.”