Bavarian Nordic in advanced talks to partner prostate cancer vaccine Prostvac

Danish drugmaker Bavarian Nordic (BAVA: CO) says that it is actively pursuing its strategy for partnering with a global pharmaceutical company for the Phase III development and commercialization of Prostvac, which has attracted significant interest. The company says it is currently in advanced discussions with a number of companies, including some of the largest, with due diligence ongoing.

Given that Prostvac gains regulatory approval, it will be the second prostate cancer vaccine to come to market, after that of US firm Dendreon’s Provenge (sipuleucel-T), but the Danish company’s product has shown greater efficacy. Prostvac extended the life of prostate cancer patients by as much as 8.5 months compared with a placebo, early trials showed. Men lived about 4.1 months longer with Dendreon’s Provenge and 3.9 months longer in a study of J&J’s experimental treatment abiraterone.

Commenting on the news, Jyske Bank analyst Frank Hoerning, reported by Bloomberg, said: Bavarian may be able to demand royalty payments of as much as 25%, noting that “the market’s opening its eyes and seeing that Bavarian Nordic could enter into a partnership in the near future.”