London, UK; Philadelphia, PA; Mississauga, ON; and Vancouver, BC – Pharmaceutical giant GlaxoSmithKline (GSK) is planning to acquire biotechnology company ID Biomedical. The two companies announced today that they have made a definitive agreement for the acquisition.
An integrated biotechnology company dedicated to the manufacturing and development of vaccine products, including influenza vaccines, ID Biomedical has facilities in Canada and in the United States.
GSK says the proposed acquisition reflects its continuing commitment to address the public health need for increased supply of influenza vaccines. ID Biomedical is currently in the process of expanding and upgrading its Canadian manufacturing facilities, which are expected, beginning in 2007, to produce around 75 million doses per year of ID Biomedical’s Fluviral egg based influenza vaccine.
ID Biomedical will become a wholly owned subsidiary of GSK.
The acquisition has been approved by both GlaxoSmithKline and ID Biomedical’s boards of directors, is subject to the approval of ID Biomedical’s shareholders, applicable regulatory clearances and certain other conditions. The transaction is expected to close by the end of 2005 or early 2006.
“GSK has moved quickly over the past few months to meet the growing demand for flu vaccines worldwide and to transform GSK into one of the leading global influenza vaccine manufacturers,” said Jean-Pierre Garnier, CEO of GSK. “The proposed acquisition of ID Biomedical is a unique strategic opportunity to increase current capacity of classic flu vaccines, to provide us with increased capacity for next generation flu vaccines under development and to help GSK prepare for the threat of a flu pandemic. “
In addition to acquiring an influenza vaccine business with sales to the Canadian public market, this transaction would enhance GSK’s vaccine presence in the US where Fluarix, GSK’s existing influenza vaccine, received FDA approval at the end of August.
“Combined with our recent investment to double influenza vaccine production capacity at our facility in Dresden, Germany, and our recent purchase of the Marietta vaccine site in Pennsylvania, USA where we will develop new flu vaccine production technology, the acquisition of ID Biomedical could also represent a major step in GSK’s approach against pandemic flu threat,” added Jean Stphenne, president of GSK Biologicals, GSK’s vaccines division.