Akorn and India's Serum Inst sign US vacc deal

US drugmaker Akorn and the Serum Institute of India, a privately-held manufacturer of anti-infective products, have signed an exclusive memorandum of understanding to commercialize several of the latter's vaccines in the USA. Products covered by the agreement include: a measles, mumps and rubella vaccine; a human diploid rabies vaccine; a recombinant hepatitis B vaccine; and an oncology bladder vaccine.

Under the terms of the MOU, which is due to be converted into a definitive agreement within 60 days, Serum will grant Akorn exclusive rights to the vaccines in the USA and has agreed to undertake manufacture of the agents for clinical trials. In return, Akorn will pay a fee for each of the licensed products that it decides, at its own expense, to move into clinical trials and subsequently submit to the Food and Drug Administration. The firms estimate that vaccines covered by the agreement have a potential US market size of $1.5 billion a year.

The proposed agreement also stipulates that net revenues from the sale of any products that are successfully commercialized will be split equally between the two firms. Furthermore, Serum intends to increase its equity position in Akorn, which has agreed to sell one million shares of common stock, at the then market price, within 30 days of the deal coming into effect.