Early in July, Sanofi (NYSE: SNY) announced an acquisition and a divestment, both affecting its vaccine business. In a recent annual filing, Sanofi labelled its vaccine unit as an area of priority to sustain its leadership role. To that end, the company has expanded its influenza vaccine portfolio and shed its small pox vaccine business, including its related contract with the Center for Disease Control (CDC).
In 2016, Sanofi generated $5.04 billion in net sales from its vaccine products. Its influenza vaccine unit was the second largest contributor to this total, accounting for $1.7 billion in net sales that year, a record year for Sanofi’s influenza campaign. Sanofi Pasteur, the business unit that produces and markets influenza vaccines, delivered about 200 million doses in 2016.
To bolster its influenza vaccine portfolio, on July 11th the company announced the acquisition of Connecticut-based Protein Sciences, for a $650 million upfront payment and up to $100 million upon achievement of certain milestones. Protein Sciences develops, manufactures and commercializes vaccines and biopharmaceuticals for the prevention and treatment of influenza, SARS and other diseases. It received FDA approval in October 2016 for its Flublok® Quadrivalent Influenza Vaccine (QIV). Flublok® is the only recombinant protein-based influenza vaccine approved by the FDA. The acquisition of Protein Sciences will allow Sanofi to broaden its flu portfolio with the addition of a non-egg based vaccine.
Just three days later, Emergent BioSolutions Inc. (NYSE: EBS), a developer of specialty products for use in biodefense and commercial markets, announced it was purchasing Sanofi’s ACAM2000® business. Sanofi will receive an upfront payment of $97.5 million and up to $27.5 million in near-term contingent regulatory and manufacturing-related milestones.
ACAM2000 is the primary smallpox vaccine designated for use in a bioterrorism emergency, with more than 230 million doses having been supplied to the U.S. Strategic National Stockpile (SNS). Under the terms of the agreement, Emergent will receive ACAM2000®, the only vaccine licensed by FDA for active immunization against smallpox disease for persons determined to be at high risk; an existing 10-year contract originally valued at up to $425 million with the CDC with a remaining value of up to approximately $160 million for deliveries of ACAM2000 to the SNS; and a cGMP bulk manufacturing facility and a lease to a cGMP fill/finish facility.
