Baxter and Takeda complete deal for Vero cell-based flu vaccines in Japan

The USA’s Baxter International (NYSE: BAX) and Japan’s largest drugmaker Takeda Pharmaceutical (TSE: 4502) have completed a development, license and technology transfer agreement, under which the two companies will expand on their previously announced collaboration to bring Vero cell culture-based influenza vaccines to the Japanese market. Specifically:

• Baxter will exclusively license to Takeda its proprietary Vero cell-based influenza vaccine technology for the Japanese market;
• the companies will jointly pursue development and licensure of an H5N1 influenza vaccine in Japan;
• with assistance from Baxter, Takeda will pursue funding from the Japanese government for the construction of a Vero cell-based influenza manufacturing facility in Japan in order to fully implement the agreement; and
• Baxter and Takeda will undertake a technology transfer to enable Takeda to manufacture the H5N1 influenza vaccine at full-scale by the end of Takeda’s 2013 fiscal year (ending March 31, 2014).

The deal includes undisclosed payments by Takeda to Baxter consisting of upfront cash, development cost reimbursements, payments upon the achievement of certain development, technology transfer, regulatory and commercial milestones, and royalties on the sale by Takeda of Vero cell-based influenza vaccines. Neither Baxter nor Takeda expects to revise earnings guidance for their respective 2010 fiscal years in connection with entering into this agreement.