Novavax, Cadila form JV for developing vaccines

based biotechnology firm Novavax has formed a joint venture with Cadila Pharmaceuticals for developing and commercialising virus-like particle-based (VLP-based) vaccines.
The joint venture will develop and commercialise Novavax's VLP-based vaccine and Cadila's therapeutic vaccine candidates against cancer as well as its adjuvants, biogeneric and biological diagnostic products for the Indian territory, Navavax said in filing to Security Exchange Commission (SEC). Novavax would provide the technology and Cadila would invest $8 million (Rs 40 crore) over three years to support the joint venture operations, it added.
In the proposed joint venture, Cadila would have 80 per cent stake while remaining 20 per cent will held by Novavax, company said. Novavax will also have the right to negotiate license arrangements of certain vaccines developed by the joint venture for commercialising it outside the India. As part of the agreement which both companies signed on March 31, 2009, a wholly-owned subsidiary of Cadila will purchase 12.5 million shares of Novavax's common stock at the market price of $0.88 per share, for an aggregate of $11 million (Rs 55 crore). Cadila Managing Director Rajiv Modi will join the Novavax Board of Directors immediately.

Cadila signs drug development deal with Eli Lily

Cadila has signed a drug development agreement with Eli Lily in which Cadial will do the initial part and take the molecule all the way up to phase II after which Eli Lily will take over and develop and bring it to the market. Thereby, Cadila is entitled to receive US$ 300 million in terms of milestone payment and this agreement could continue for about six years. Though there is no clarity yet as to when they will receive milestone payments. These drug development processes can be very long and not all molecules actually hit the market, so we do not know when the molecule will come out but the positive thing is that it builds a kid of confidence capabilities of Cadila. Cadila already from its own molecule pipeline has six molecules out of which two are phase II trials. Basically it’s the confidence on research and development (R&D) capabilities of Cadila, because this USD 300 million is not going to come right now. With its out performance in the past three months Cadila’s results have also been good despite its high debt. Consistently it has been a good performer; it has garnered good market share in US through inorganic as well as organic routes and also its own player in domestic markets which has helped it sustain its growth

Cadila Healthcare buys out Brazilian Nikkho

Cadila Healthcare Ltd has acquired 100 per cent stake in Quimica e Farmaceutica Nikkho do Brasil, a mid-sized, privately held company in Brazil, for $25 million. This is the company's second overseas acquisition this year.

The acquisition is being made through Zydus Healthcare Brasil Limitada, the step-down wholly-owned subsidiary of the company. The Brazilian company reported sales of $26 million in 2006, a notice to the BSE said. The acquisition will boost Cadila's existing generic business in Brazil by providing enhanced reach and distribution. The company, which had set up its Brazilian subsidiary in 2002, has already registered 13 products which are being marketed as generics.

(Source: Economic Times)