GSK expands in China through joint venture on pediatric vaccines

UK drug giant GlaxoSmithKline and Jiangsu Walvax Biotech Company (Walvax) have announced a cooperation agreement to form a long-term joint venture to develop and manufacture pediatric vaccines for use in China. The JV will produce vaccines for measles, mumps, and rubella (MMR) (Priorix) and potentially other paediatric vaccines. GSK will also transfer the technology to enable the JV to manufacture the vaccines locally over time.

Jean Stephenne, president of GSK Biologicals, said: 'In China, GSK is establishing local production capacity with a leading vaccine manufacturer and developer, in advance of the significant expansion in the Chinese public vaccine market.

In addition to the technology transfer, the JV will build a new manufacturing facility for GSK's pediatric vaccine Priorix and once the facility is operational, the JV will supply the vaccines to China's public vaccine market.

Once the JV is formed, upon fulfilment of a number of conditions, a total of £41.2 million ($65.5 million) will be invested into the JV. GSK will initially invest £20.1 million at incorporation and an additional £7.3 million will be added in 2015. Walvax will invest a total of £13.8 million. Equity interest will be divided 65% and 35% between GSK and Walvax respectively with provisions enabling both parties to revise their equity share in the future.

Walvax is an affiliate of Yunnan Walvax Biotech, China's second largest manufacturer of Haemophilus influenzae type b (Hib) conjugate vaccine. With more than 400 employees, the company has been driving biotechnology vaccine innovation and development in China for over eight years. Walvax has significant expertise in freeze-drying technologies, which make vaccine preservation and transportation easier.

The JV further expands GSK's presence in China. In June of this year, GSK also signed an agreement with Chinese biotechnology company Shenzhen Neptunus Interlong Bio-Technique to develop and manufacture flu vaccines.

Despite the existence of an MMR vaccine for years, measles remains a leading cause of death among young children worldwide. According to the World Health Organization, 197,000 people worldwide died of measles in 2007; more than 95% of these deaths occurred in low-income countries. Following its pledge to eradicate measles by 2012, the Chinese Ministry of Health incorporated MMR vaccine into its Expanded Program on Immunization (EPI) in 2008

Government orders for pandemic (H1N1) 2009 vaccine

Meantime, GSK has provided an update on orders received for its pandemic (H1N1) adjuvanted vaccine.

On August 4, GSK confirmed that it had contracts in place to supply 291 million doses of the vaccine and had a variety of agreements in place with the US government to supply pandemic products worth $250 million. Since that date, 22 government orders have been agreed to supply a further 149 million doses of the vaccine. This now brings the total number of doses ordered for GSK's pandemic vaccines to 440 million. Discussions continue with governments for further supplies.