04 Oct 2012, BioSpectrum Bureau , BioSpectrum
Singapore: Medicago has granted Philip Morris Products (PMP) an exclusive license to develop, commercialize and manufacture Medicago's pandemic and seasonal influenza vaccines for China. PMP is a subsidiary of Philip Morris International, the leading international tobacco company. Also, Medicago has signed an exclusive, worldwide license for a portfolio of plant-based protein development technologies from PMP.
Medicago will receive an upfront payment of $4.5 million from PMP. Medicago will also be eligible to receive development milestone payments totalling $7.5 million, as well as royalty payments on any future sales of pandemic and seasonal influenza vaccines by PMP in China that utilize the Medicago technologies.
"We look forward to working closely with PMP to develop our pandemic and seasonal influenza vaccine candidates in the coming years," said Mr Andy Sheldon, CEO, Medicago. "Strengthening our VLP platform and international expansion to emerging markets like China is a key component of our growth strategy, and this partnership represents an important milestone in achieving this strategy."
Philip Morris Investments, a subsidiary of Philip Morris International, holds 98,608,800 common shares of Medicago, representing approximately 40 percent of the issued and outstanding common shares of Medicago.