Pharmaprojects R&D Pipeline News Feed
Biodefence contracts cause problems for Acambis and Vaxgen
27th Mar 2007
Acambis has abandoned its modified vaccinia ankara smallpox vaccine, MVA-3000, after missing out on a US$1 billion US government contract. The vaccine had reached Phase II clinical trials and had been awarded fast track status, but Acambis was still eliminated from the tender process in November 2006 after being deemed uncompetitive. The loss of such a major contract cast Acambis into financial disarray, and led to a major restructuring of its top-level management, as well as the planned cutting of 15% of its workforce.
In related news, Vaxgen could face similar problems after receiving notification from the US government that its anthrax vaccine stockpiling contract has been terminated. The Department of Health and Human Services (HHS) ended the US$877.5 million agreement to supply 75 million doses of Vaxgen's rPA102 recombinant anthrax subunit vaccine after a deadline to initiate Phase II trials was missed. Vaxgen has now filed an appeal against the termination, as under the Federal Acquisition Regulation, the US government could be entitled to recover excess costs if HHS procured the same or a similar anthrax vaccine from another contractor.
These cases only serve to highlight that whilst the acquisition of lucrative contracts from national governments can prove a great boon to an aspiring pharmaceutical company, relying on such sources of revenue can prove a high risk strategy.
