VaxGen ends anthrax vaccine development

California, USA-based vaccines developer VaxGen says it has discontinued development of its recombinant anthrax vaccine and is laying off 20 employees, around 25% of its workforce. The move follows the Department of Health and Human Services decision to terminate its supply contract with the firm as a result of the clinical hold placed on the agent's development (Marketletter March 19).

Last week, the HHS issued a "sources sought" notice indicating a "future need for 25 million doses of an anthrax recombinant protective antigen vaccine," adding that respondents should have Investigational New Drug clearance from the Food and Drug Administration.

VaxGen said that, while it is in talks with the HHS to discuss a possible contract termination settlement, it expects to incur costs of $557,000, but added that its operating expenses will fall around $175,000 a month. The firm also said that, as a result of the development work it has completed this year, it is in talks with several parties which are interested in partnering the rPA anthrax vaccine program.