Flu vaccine

GlaxoSmithKline is to acquire ID Biomedical, the Canadian vaccine developer and manufacturer, for $1.4 billion.

GSK will also assume responsibility for ID Biomedical's debt of $77 million as well as loan the company up to $120 million to repay debt and provide it with finance until the deal closes.

The acquisition, which has been approved unanimously by both GlaxoSmithKline and ID Biomedical's Boards of Directors, is subject to the approval of ID Biomedical's shareholders, applicable regulatory clearances and certain other conditions. The transaction is expected to close by the end of 2005 or early 2006.

ID Biomedical is currently in the process of expanding and upgrading its Canadian manufacturing facilities, which are expected to produce around 75 million doses per year of ID Biomedical's Fluviral egg based influenza vaccine beginning in 2007.

In addition to acquiring an influenza vaccine business with sales to the Canadian public market, the deal would enhance GSK's vaccine presence in the US where Fluarix, GSK's existing influenza vaccine, received FDA approval at the end of August.

ID Biomedical's Fluviral has been granted fast track status by the US Food and Drug Administration (FDA) and is eligible for priority review.