Acquisition approval helps GSK in North America

The British Columbia Supreme Court has approved the proposed acquisition of Canadian biotechnology company ID Biomedical by GlaxoSmithKline (GSK).

The approval includes a change to the terms described in ID's management proxy circular from 18 October 2005, meaning that holders of 2003 warrants will receive Cdn$9.20 per warrant, rather than the initially stated Cdn.$5.33, although they may choose exercise dissent rights to have the court fix the 'fair value' of their 2003 warrants. Subject to conditions, ID expects to finalise the deal to become a wholly-owned subsidiary of GSK before the end of the year.

ID is a vaccine-oriented company operating in r&d, manufacturing, sales and marketing from facilities in Canada and in the US. It thus aids GSK in its goal of expanding its vaccine research and production network in North America, which has already seen the UK company acquire Corixa Corporation.

ID has 'significant marketed products worldwide and an extensive pipeline in both clinical and preclinical development', and holds a leading position in the Canadian influenza market, supplying around 75% of the Canadian government's influenza vaccine purchases and possessing a 10-year mandate, awarded by the Canadian Government in 2001, to assure 'a state of readiness in the case of an influenza pandemic and provide influenza vaccine for all Canadians in such an event'.

GSK's ceo, Jean-Pierre Garnier, said of the acquisition: 'This is a major step toward fulfilling our mission of becoming a leading global influenza vaccine manufacturer. It provides a significant increase in flu vaccine manufacturing capacity, which will improve our ability to address both seasonal and pandemic influenza threats.' He says that he expects seasonal vaccine production to reach 150 million doses per year before the end of 2009, using ID's Canadian facilities and GSK's Dresdenplant, Germany.

'We are actively working with governments and health authorities around the globe to support their plans for pandemic flu readiness and are committed to bring the capabilities of our flu vaccine production facilities to the global preparation effort,' he added.

Belgium is the current centre of GSK's vaccine r&d and production. In 2004, according to the company, it distributed over 1.5 billion doses of vaccines to 168 countries in both the developed and developing world. In the next five years it expects to launch five 'major' new vaccines: an HPV vaccine targeting cervical cancer; a vaccine against rotavirus (already approved in 23 countries); a vaccine to prevent pneumococcal disease; an improved flu vaccine for the elderly, and a meningitis combination vaccine for infants in the US.