US govt cancels' VaxGen antrax vaccine contract

California, USA-based VaxGen saw its share price drop 3.5% to $1.40, after it revealed that the Department of Health and Human Services had terminated for default the company's contract to provide 75 million doses of a modern anthrax vaccine, valued at some $877.5 million. The DHHS based its decision on the fact that VaxGen had "failed to successfully cure the condition endangering performance" and to meet a milestone imposed by the agency that required the company to initiate a clinical trial of the vaccine candidate by December 18, 2006.