GSK, Daiichi Sankyo in Vaccines JV

GlaxoSmithKline (GSK) has signed an agreement with Daiichi Sankyo Co., Ltd. to form a vaccines joint venture that will hold the development and commercial rights for already existing preventative vaccines from both companies. The JV will supply globally recommended vaccines in Japan, including Human Papillomavirus (HPV) vaccine, Rotavirus, Seasonal flu, Mumps, Diphtheria Pertussis (DTP), and Measles Rubella (MR) vaccines. The business will expand as new vaccines in the JV are developed and approved.

The companies will share stake in the JV and will split profits 50/50 with a portion going to funding ongoing capital needs. There will be a minimal total cash investment of 100 million Yen (approximately £800,000) split equally between the two companies to cover the start up costs.

Christophe Weber, president designate of GSK Vaccines, said, “This collaboration marks another step in our strategy to build our presence in key growth markets and will create the first and largest company dedicated solely to vaccines in Japan. We are very pleased to be partnering with Daiichi Sankyo, a highly regarded company and an established leader in Japan. Both companies have strong track records in commercialization and, in combination, will create further significant economies of scale in the development and distribution of vaccines in the Japanese market.”

Completion of the transaction is expected in 3Q12, subject to regulatory approvals.