ExpreS2ion’s joint venture AdaptVac signs Final License Agreement with Bavarian Nordic on COVID-19 Vaccine
Hørsholm, Denmark, July 22, 2020 – ExpreS2ion Biotech Holding AB (“ExpreS2ion”) hereby announces that its joint venture AdaptVac has entered into a final license agreement with Bavarian Nordic A/S (“Bavarian Nordic”), to license the proprietary capsid virus like particle (cVLP) based SARS-CoV-2 subunit vaccine. Under the terms of the agreement, Bavarian Nordic will make an upfront payment of EUR 4 million to AdaptVac, in addition to potential future development as well as sales milestones and single to double-digit percentage-tiered royalties. The total deal value, excluding royalties is up to EUR 136 million, corresponding to SEK 1.4 billion. For application of its proprietary protein production system ExpreS2, ExpreS2ion will retain up to EUR 2 million, corresponding to SEK 21 million, of the commercial milestone payments, which are estimated to be recognised as ExpreS2ion revenues during 2021 and 2022 in accordance with the current development plans, as well a double-digit percentage of AdaptVac’s royalty revenue stream.
AdaptVac and Bavarian Nordic signed a heads of agreement in May and have now concluded a license agreement which provides Bavarian Nordic the global commercialization rights to the proprietary capsid virus like particle (cVLP) based SARS-CoV-2 subunit vaccine. Under the terms of the agreement, Bavarian Nordic will make an upfront payment of EUR 4 million to AdaptVac, in addition to potential future development and sales milestones and tiered (single to double-digit percentage) royalties. The total deal value, excluding royalties is up to EUR 136 million, corresponding to SEK 1.4 billion. ExpreS2ion will retain up to 2 MEUR, corresponding to 21 MSEK, of the commercial milestone payments, which are estimated to be recognised as ExpreS2ion revenues during 2021 and 2022 in accordance with the current development plans, as well a double-digit percentage of AdaptVac’s royalty revenue stream.
Last month, encouraging preclinical data for the vaccine candidate were reported, demonstrating excellent COVID-19 immunization with very high level of SARS-CoV-2 virus neutralization in a mice model, compared to published preclinical data on other COVID-19 vaccines in development. Based on these data, the first in human study of the vaccine is planned to initiate in the fourth quarter of 2020 with data expected to become available in the first quarter of 2021. The Phase 1/2a study is supported by a Horizon 2020 EU grant awarded to the PREVENT-nCoV consortium, which, in addition to AdaptVac and ExpreS2ion, represents various European universities.
Bavarian Nordic will assume responsibility for the further clinical development, however only if external funding can be obtained. Bavarian Nordic is in the process of seeking funding from various initiatives established to rapidly advance COVID-19 vaccine development.
ExpreS2ion’s CEO Bent Frandsen comments:
“Since embarking on the COVID-19 vaccine utilizing advantageous technologies based on AdaptVac’s capsid VLP and ExpreS2ion’s ExpreS2 platforms, we, together with AdaptVac, have worked intensely on developing a unique SARS-CoV-2 vaccine. With Bavarian Nordic’s expertise in late-clinical stage development and market commercialisation, this unique investigational vaccine is set for public access soon”.
About Bavarian Nordic
Bavarian Nordic is a fully integrated biotechnology company focused on the development, manufacture and commercialization of life-saving vaccines. Bavarian Nordic is a global leader in smallpox vaccines and have been a long-term supplier to the U.S. Strategic National Stockpile of a non-replicating smallpox vaccine, which has been approved by the FDA, also for the protection against monkeypox. Their commercial product portfolio furthermore contains market-leading vaccines against rabies and tick-borne encephalitis. Using their live virus vaccine platform technology, MVA-BN®, they have created a diverse portfolio of proprietary and partnered product candidates designed to save and improve lives by unlocking the power of the immune system, including an investigational Ebola vaccine, licensed to Janssen.
About the COVID-19 Coronavirus outbreak
A novel Coronavirus (COVID-19) outbreak was reported in Wuhan, China in late December 2019 and declared a pandemic by WHO on March 11th, 2020. The COVID-19 Coronavirus is a part of the same family as SARS and MERS, and there have been 14.6 million confirmed cases and more than 607 000 deaths reported as of July 21st, 2020. The latest situation updates are available on the WHO web page: https://www.who.int/emergencies/diseases/novel-coronavirus-2019.
About AdaptVac
AdaptVac is a joint venture between ExpreS2ion Biotechnologies and NextGen Vaccines, owned by the inventors of the novel proprietary and ground-breaking capsid virus-like particle (cVLP) platform technology spun out from the University of Copenhagen. The Company aims to accelerate the development of highly efficient therapeutic and prophylactic vaccines within high value segments of oncology, infectious diseases and immunological disorders. Granting of the core patent in the U.S. has expanded AdaptVac’s patent protection to include our entire pipeline of vaccines and immunotherapies in development.
About the PREVENT-nCoV consortium
ExpreS2ion Biotechnologies and AdaptVac are members of the PREVENT-nCoV consortium that earlier this year received an EU Horizon 2020 grant to rapidly advance a unique cVLP vaccine candidate against COVID-19 into the clinic. In addition to to ExpreS2ion and AdaptVac, the consortium members are Leiden University Medical Center (LUMC), Institute for Tropical Medicine (ITM) at University of Tübingen, The Department of Immunology and Microbiology (ISIM) at University of Copenhagen, and the Laboratory of Virology at Wageningen University.
Certified Adviser
Svensk Kapitalmarknadsgranskning AB
Telefon: +46 11 32 30 732
E-post: ca@skmg.se
For further information about ExpreS2ion, please contact:
Bent U. Frandsen, CEO
Telephone: +45 4256 6869
E-mail: buf@expres2ionbio.com
This press release contains information that ExpreS2ion is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above on July 22, 2020.
About ExpreS2ion
ExpreS2ion Biotechnologies ApS is a fully owned Danish subsidiary of ExpreS2ion Biotech Holding AB with company register number 559033-3729. ExpreS2ion has developed a unique technology platform, ExpreS2, for fast and efficient non-clinical development and production of complex proteins for new vaccines and diagnostics. ExpreS2 is regulatorily validated for clinical supply. The platform includes functionally modified glycosylation variants for enhanced immunogenicity and pharmacokinetics. Since 2010, the Company has produced more than 300 proteins and 40 virus-like particles (VLPs) in collaboration with leading research institutions and companies. Since 2017, ExpreS2ion develops novel VLP based vaccines through its joint venture AdaptVac ApS. For additional information, please visit www.expres2ionbio.com and www.adaptvac.com.