Nabi gets $21.5 million on completing sale of PentaStaph to GlaxoSmithKline

Maryland, USA-based Nabi Biopharmaceuticals says it has completed the sale of PentaStaph (pentavalent Staphylococcus aureus vaccine) and related assets to UK drug giant GlaxoSmithKline. The sale was announced in August of this year.

Under the terms of the agreement, Nabi will receive cash payments of $21.5 million of which $20 million is associated with the PentaStaph transaction close, $1 million associated with the sale of a separate preclinical program for a vaccine against S.epidermedis, as well as $500,000 as reimbursement for license fees and clinical materials previously manufactured for use in the Phase I trial.

The remaining $26 million in payments contemplated in the transaction are associated with the completion of four milestones which the US company expects to complete within the next 16 months. These remaining milestones include initiation and completion of the Phase I trial, the successful transfer of specified materials and the successful transfer of technology. In connection with the sale, Nabi agreed to provide services to GSK related to the conduct of the Phase I trial and the transfer of the Staph program in exchange for reimbursement of Nabi's expenses.

"The completion of this transaction marks another significant step in our strategic alternatives process," said Raafat Fahim, president and chief executive of Nabi. "We remain focused on our strategic alternatives including advancing strategic partnering discussions for the continued development and future commercialization of NicVAX, our proprietary smoking cessation vaccine for treatment of nicotine addiction and prevention of smoking relapse as well as a sale or merger of the company," he added.