Clinical-stage biotechnology company Novavax has announced the formation of a joint venture with Cadila Pharmaceuticals of India. The alliance was formed to develop, manufacture and market pharmaceuticals, vaccines and diagnostic products in India. Cadila will hold an 80% stake in the venture, and Novavax the remaining 20%.
The joint venture will be funded by an US$11 million capital injection from Cadila into Novavax, along with revenues from the sales of biogenerics. It will conduct clinical testing and registration of products that will be marketed and sold in India, once approval has been obtained from the India Foreign Investment Promotion Board.
The strategic alliance will enable Novavax to utilize Cadila’s research, clinical development and manufacturing expertise, and its infrastructure.
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Novavax will also contribute technology to the venture for the development of several other vaccine candidates against diseases such as hepatitis E and dengue fever. Cadila will contribute approximately US$8 million over three years to support the joint venture operations.
The transaction awards Novavax the right to negotiate the licence arrangements of certain vaccines developed by the joint venture for commercialization outside of India, while also allowing the company to negotiate for other vaccines for commercialization in the US and other overseas territories.
In a press release, the president and CEO of Novavax, Rahul Singhvi, said: “Partnering with Cadila, one of India’s leading pharmaceutical companies, and leveraging its substantial clinical and financial support along with low-cost infrastructure, has created a unique opportunity for us.”
Rajiv Modi, managing director of Cadila, said: “We have been looking for a vaccine partner in the United States with advanced vaccine technology for some time.
“In Novavax, we believe that we have found the best combination of an advanced and proven technology platform for creating next-generation vaccines,” he said.
Indian legal advice was provided to Novavax by Khaitan & Co.
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