BAVARIAN NORDIC, GSK END COLLABORATION ON SMALLPOX VACCINE

Danish drugmaker Bavarian Nordic announced that it has agreed with GlaxoSmithKline (GSK) to end the companies' collaboration on the production and marketing of Imvamune, a third-generation smallpox vaccine.

In 2004 the companies signed a memorandum of understanding to jointly produce and distribute Imvamune to various international markets. At the time Bavarian Nordic's new vaccine production facility was not yet complete. Now, with the establishment of the new facility, the company believes it has the capacity to fulfill government orders.

Termination of the agreement will not have any negative financial consequences for Bavarian Nordic or GSK, according to the companies.

"Bavarian Nordic's strategic and market position is today stronger than at the time we signed the memorandum with GSK. We are now capable of handling production and marketing of Imvamune to the authorities ourselves," Peter Wulff, president and CEO of Bavarian Nordic, said. "If market demand should exceed our own capacity, our discussions on a future collaboration with GSK may be resumed."