Cadila Pharmaceuticals Launches Joint Venture With Novavax in India

ROCKVILLE, - Novavax, Inc. (Nasdaq: NVAX) and Cadila Pharmaceuticals today announced the launch of their joint venture in India under the agreement signed between the two companies in March 2009. This joint venture, called CPL Biologicals Pvt. Ltd., will develop and manufacture vaccines, biological therapeutics and diagnostics in India using technology contributed from Novavax and Cadila Pharmaceuticals. In addition, CPL Biologicals will establish manufacturing facilities in India and develop, produce and sell products such as seasonal influenza vaccine and potentially other novel vaccines against dengue fever and chikungunya fever based on Novavax's virus-like-particle (VLP) vaccine technology. CPL Biologicals also expects to develop the pandemic H1N1 influenza vaccine candidate in India that Novavax is developing in the United States.

Mr. I. A. Modi, Chairman of CPL Biologicals, noted: "This joint venture represents an important strategic alliance for vaccine development and manufacturing in India and uses unique and cutting-edge vaccine technology. Our vision is to be a leading provider of high quality, affordable vaccines, biological therapeutics and diagnostics through world-class research and innovative manufacturing to address current and future global health challenges."

Rahul Singhvi, President and Chief Executive Officer of Novavax, stated: "We are excited to see the agreement with Cadila announced in March come to fruition with the official launch of CPL Biologicals today. We look forward to a long and successful effort to bring important new vaccines and other pharmaceutical products to the people of India."

Drug stocks inch lower while broader market gains

The Amex Pharmaceutical Index (DRG 256.31, -1.02, -0.40%) and the Amex Biotechnology Index (BTK 685.34, +0.65, +0.09%) both slipped marginally in late-day action. The Dow Jones Industrial Average (XX:DJII 11,229, -279.97, -2.43%) was up about 60 points at 8,732.

Novavax Inc. (NVAX 3.20, -0.06, -1.84%) was the highflier among the smaller-cap biotech names, with shares soaring about 50% to $2.87.

The vaccine developer said that it has signed a deal with the National Institutes of Health to test its new VLP technology in the development of a vaccine to combat the H1N1 flu virus.

Novavax said it has already made pilot batches of the vaccine, which the Centers for Disease Control plan to test on animals.

Novavax's VLP technology is able to produce vaccines within just a few weeks, according to the company. Current production technologies for flu vaccines can take up to six months.

Shares of Antigenics Inc. (AGEN 2.63, -0.04, -1.50%) were on a roll for the fourth straight session Thursday morning before reversing course later in the day. At last check, shares were down almost 2% to $2.61.

Early Monday, Antigenics said an analysis of patient data showed that users of its kidney-cancer therapy Oncophage lived appreciably longer. Oncophage is currently approved only in Russia. The company has also filed for approval in the European Union.

Shares of Antigenics have gained almost 300% over the past 30 days.

Generex Biotechnology Corp. (GNBT 0.99, +0.16, +18.56%) shares shot up 30% to 60 cents.

The biotech said it plans to present positive mid-stage clinical data for its spray insulin product Oral-lyn at a scientific meeting of the American Diabetes Association, to be held from June 5 to June 9. As opposed to inhaled insulin products, Oral-lyn is sprayed in the mouth and does not penetrate the lungs

Pharmaceutical companies stand to make profit from ‘swine flu'

A Boston-based company, Emerging Portfolio Fund Research Global, Inc. (EPFR), a provider of fund flows and asset allocation data to financial institutions around the world, reported on May 1 that health-care and biotechnical companies recorded their first week of stock price increases since February.

According to market watchers, the biotech industries stock section was one of the few groups that hadn't been participating in the recent market rally.

The Canadian Money Forum in a report “Swine Flu Effects on the Market” said the initial stock market reaction to the news that the “swine flu” could become a pandemic was to cause aviation stocks to fall, but for pharmaceutical stocks there was a rise, especially those companies that made flu vaccines such as the United Kingdom-based company GlaxoSmithKline.

According to Business Week, GlaxoSmithKline, the makers of Relenza, the other popular antiviral, stock increased by eight percent.

Also, according to Business Week, the makers of Tamiflu, Roche reported their shares were up four percent since April 27.

MarketWatch.com said GlaxoSmithKline stock fell 20-cents a share to $30.56 on the afternoon of May1.

The World Health Organization said in a press release that both companies had approached the UN organization about readiness to deploy their antiviral stock inventories.

EPFR said that as the cases of H1N1 infections expand governments must plan for vaccine production and tap emergency stockpiles of antiviral medicine.

The Wall Street Journal reported on May 1, the United Kingdom had enough Tamiflu to treat 33 million people, or 54 percent; France had enough Tamiflu to also treat 54 percent of its population; Japan had on hand enough to treat 28 percent of its people; while the U.S. had enough to inoculate 50 million people or 16 percent. The WSJ said that the World Health Organization reported that it had enough antiviral to treat one million on the African continent; however, no cases have been reported there at Final Call press time. Analysts say assuming Tamiflu stocks need replenishing it could come at a cost of $388 million. Critics of the big pharmaceuticals say they want to use the media attention on the flu crisis to draw attention to the corporate practices of the agriculture and pharmaceutical industries placing business before health.

Some supporters of the big pharmaceuticals say profits earned should be seen for what they really are–an ordinary operating cost–not a windfall of cash made on the backs of the needy.

“People are going to buy the over the counter products such as Tylenol for headaches, masks, cleaning solutions and hand sanitizer to reduce their personal anxiety; and this means cash in the register for companies such as 3M, makers of the masks,” stated Rudolph Muhammad, a New York City disaster preparedness activist and a member of the Nation of Islam National Ministry of Health.

The WSJ Health Blog said a representative from 3M told them they were racing to meet demand for its N95 respiratory mask. Three-M was quoted on the New York Stock Exchange on May 1 at $57.88 a share, up 49 percent since news of the H1N1 virus surfaced.

Johnson & Johnson, makers of Purell hand sanitizer, also reported that their stock rose 49 percent on the NYSE and was now quoted at $52.54 a share.

Market analysts say that while 70 percent of the world's antiviral drugs are produced in Europe, there is an interesting competition developing between the Alabama-based BioCryst Pharmaceuticals Inc. and the Maryland-based biotech company, Novavax, Inc. in who may be capable of being the fastest in developing a new vaccine to combat H1N1.

Since news broke that Tamiflu and Relenza may not be capable of preventing H1N1, the stock of both companies has risen, with Novavax shares doubling to $2.55 a share, while BioCryst stock rose $1.67 or 75.6 percent to $3.88.

Novavax in a press release said they had contacted the Centers for Disease Control and Prevention claiming they can produce a new vaccine from the emerging strain of the flu virus in 12 weeks.

Another bio-tech company, the Quidel Corp. makers of the QuickVue rapid flu test, reports a rise in their stock of forty-nine cents or a 5.1 percent increase to $10.03.