GlaxoSmithKline (GSK) has announced plans to divest its travel vaccines Rabipur and Encepur to Bavarian Nordic.
The two vaccines are for rabies prevention and tick-borne encephalitis respectively, both acquired from Novartis in 2015 as part of the acquisition of its vaccines business.
Rabipur is a well-established life-saving vaccine with 30 years of market experience supported by extensive clinical and safety evidence and World Health Organisation (WHO) pre-qualification.
Encepur is indicated for active immunisation of high-risk populations against tick-borne encephalitis, with a unique dosing flexibility supported by proven efficacy and long-term persistence data.
GSK says that the move supports the company’s strategic intent to increase focus and reinvest in growth assets, innovation and a simplified supply chain in its vaccines business.
The agreement will “enable us to commit greater resources to our key growth assets and to our R&D pipeline, while also ensuring the continued supply of these important and successful vaccines,” says Roger Connor, president, Global Vaccines at GSK.
The pharma giant will receive an upfront payment of approximately £259 million as well as milestone payments and additional proceeds from the sale of inventory over the course, totaling a potential £821 million (955 million euros).
To ensure supply continuity, the company has announced that both vaccines will continue to be manufactured primarily at GSK’s Marburg site in Germany until full production is transferred to Bavarian Nordic.
The transaction is expected to close by the end of 2019 and is conditional upon anti-trust approval as well as approval of Bavarian Nordic’s rights issue by its shareholders.