GlaxoSmithKline and Biological E set up JV to develop combination vaccine

UK pharma giant GlaxoSmithKline (LSE: GSK) and Indian vaccines company Biological E have entered into an agreement to form a 50/50 joint venture for the early stage R&D of a six-in-one combination pediatric vaccine to help protect children in India and other developing countries from polio and other infectious diseases. Completion of the transaction is expected in 2013, subject to several conditions including regulatory approval of the JV.

If approved, the vaccine, which would combine GSK’s injectable polio vaccine (IPV) and Biological E’s pentavalent vaccine for diphtheria, tetanus, whooping cough (whole cell pertussis), hepatitis B, and Haemophilus influenzae type b, could be the first of its kind. The vaccine would enable fewer injections for children thereby improving compliance in immunization schedules. The fully liquid formulation of the vaccine also means it would be ready to use with no additional ingredients or materials required, freeing up space at local storage facilities.

The JV will bear the development costs for the candidate vaccine, which is expected to enter Phase I development in the next two years. A small initial cash investment will be made by both companies to cover start-up costs for the JV and subsequent development costs will be split equally.