Novartis-GSK asset swap allows Valneva to take back control of marketing and distribution of Ixiaro

France-based biotech company Valneva (EPA: VLA) is to take direct control over the marketing and distribution of Ixiaro, the travel vaccine against Japanese encephalitis.

This terminates the marketing and distribution agreement with UK pharma major GlaxoSmithKline (LSE: GSK) related to Ixiaro, signed in 2006 with Novartis'  (NOVN: VX) vaccines division. It has been possible due to specific contract provisions following the asset swap between Novartis and GSK, and supports Valneva’s strategy to build an independent and fully-integrated vaccines biotech company and use the potential of Dukoral, the company’s recently-acquired second travel vaccine.

It expects to significantly improve sales margins and profitability from Ixiaro. Valneva believes that it will be able to continue to grow in-market sales from current levels by giving it full focus and attention, and by entering markets where the vaccine is approved but not marketed. After a transition period expected to last until early 2016 in all major territories, Valneva will market and distribute the Japanese encephalitis vaccine through a combination of its own sales and marketing teams, and country-specific marketing and distribution arrangements with established local partners.