Dutch Biotech Company, IAVI Sign Exclusive Licensing Agreement to Develop AIDS Vaccine
September 15, 2004
Dutch biotechnology company Crucell on Tuesday announced an exclusive licensing agreement with the International AIDS Vaccine Initiative to develop an AIDS vaccine based on the company's AdVac technology, Reuters reports. Crucell likely will receive between $3.7 million and $6.1 million in advance payments as a result of the agreement, industry analyst Adrian Howd said. The company also will receive annual, milestone and royalty payments, according to a company release. Crucell's AdVac technology triggers an immune response by delivering genetic material through the common cold virus (Reuters, 9/14). According to an IAVI report released in July, more than 30 vaccines are currently in clinical trials. However, of the 30 vaccine candidates being researched in 19 countries, only one has reached the final testing phase. IAVI has called for $1.3 billion in funding for vaccine development. IAVI President and CEO Seth Berkley said that annual spending on vaccine research is about $650 million -- less than 1% of the total spending on all HIV/AIDS product development (Kaiser Daily HIV/AIDS Report, 7/13).