GlaxoSmithKline takes full control of Neptunus JV; links with Arecor on vaccines

In one of two pieces of vaccine-related news yesterday, GlaxoSmithKline (LSE: GSK) said it is acquiring the remaining 51% equity interest of Shenzhen Neptunus Interlong Bio-Technique in their joint venture company, Shenzhen GSK-Neptunus Biologicals (GSKNB), for a total cash consideration of £24 million ($39 million). After approval of this agreement by the Peoples Republic of China’s authorities, GSK will become the sole owner of GSKNB.

Established in June 2009, the GSKNB alliance focuses on the development and manufacture of seasonal and pandemic influenza vaccines for China, Hong Kong and Macau. GSK increased its equity share from 40% (acquired for around $34 million) to 49% last year, with a payment of $10.6 million (The Pharma Letter August 20, 2010). The deal new is subject to Chinese regulatory approval.

China is the world's third-largest vaccine market. But it's still significantly underdeveloped, with annual sales of around $1 billion and double-digit annual growth, notes Matrix analyst Navid Malik quoted by MarketWatch, adding: "This is likely to be a significant commercial opportunity for GSK going forward."