Cangene Announces Extension of VIGIV Biodefence Contract with U.S. Government
News Sep 27, 2013
Cangene Corporation (Cangene) has announced that the scope of work under its contract with the Centers for Disease Control and Prevention (CDC) for the supply of Vaccinia Immune Globulin Intravenous (VIGIV) into the U.S. Strategic National Stockpile has been expanded.
The contract, which relates to United States Government biodefence programs, has been extended by 18 months and has also been modified to include three additional option periods that extend through 2017.
Under the terms of the contract extension, Cangene will conduct additional services to support licensure maintenance activities for VIGIV that could generate up to approximately $6.9 million in revenue for Cangene over the next 18 months.
In addition, the contract extension includes future optional services to support licensure maintenance activities for the product, as well as options for additional manufacturing and plasma collections.
The optional periods, if exercised, could generate an additional $45 million in revenue if the baseline scope of work is implemented or up to an additional $77 million in revenue if the maximum scope is implemented.
John A. Sedor, President and CEO of Cangene, said: "The extension of our VIGIV contract underscores Cangene's leadership in biodefence contracting, which complements our pipeline-focused strategy in the specialty biopharmaceutical space. We look forward to continuing to work together with the U.S. Government and the CDC to ensure preparedness against the threat of smallpox."
VIGIV is a hyperimmune product to be used in treating and preventing certain types of severe complications that may be associated with smallpox vaccination, and is considered an important component of smallpox vaccination programs.
The Company originally entered into a 5-year contract for the supply of VIGIV in 2002, which was extended to a 10-year term, before entering into a new contract with the Centers for Disease Control and Prevention in 2012.
Cangene's VIGIV product was first accepted into the U.S. Strategic National Stockpile in 2002 and was subsequently licensed in the United States by the U.S. Food and Drug Administration in 2005 and in Canada by Health Canada in 2007.