ID Biomedical gets flu vaccine distribution deal

Published 9:00 pm Monday, December 6, 2004

BOTHELL – ID Biomedical’s flu vaccine may be available in the United States by next fall under a new distribution agreement that could generate up to $2.5 billion over the next decade.

The Canadian company, which has a research and development center in south Bothell, said it is talking with the U.S. Food and Drug Administration about getting its vaccine approved here in time for next year’s flu season. At the latest, the vaccine should be licensed in time for the 2007-08 season.

After Monday morning’s announcement of the distribution agreement with three different vaccine wholesalers, ID Biomedical’s shares on the Nasdaq market rose sharply. The stock ended the day up $1.55, or 9 percent, at $18.36 per share.

Todd Patrick, the company’s president in Bothell, said the agreement will spur ID Biomedical’s entry into the lucrative U.S. drug market.

“The importance of these agreements is the strong revenue potential for ID Biomedical, and the ability to secure not only a very important marketing presence, but an established distribution system as well,” Patrick said.

Under its agreement with Henry Schein Inc., Amerisource Bergen Corp. and McKesson Corp., ID Biomedical will supply the three distributors with doses of its Fluviral vaccine through the 2014-15 season.

The distributors agreed to buy a guaranteed minimum number of nonreturnable doses, though other details were not released. ID Biomedical executives said gross sales of the vaccine could reach $2.5 billion, but they did not reveal estimated profits from the agreement.

Tony Holler, ID Biomedical’s chief executive officer, said the three distributors are among the largest U.S. distributors of flu shots outside of vaccine manufacturers Aventis Pasteur and Chiron.

Though ID Biomedical hasn’t yet supplied vaccines in this country, it is a big supplier to Canada, where the company shipped approximately 9 million doses nationwide this year. The vaccine is made in an expanding production facility in Quebec.

In fact, less than two months ago, it looked like ID Biomedical would have 1.2 million surplus doses of its vaccine. After news of a shortage in this country came out, U.S. Rep. Jay Inslee, D-Wash., asked the Department of Health and Human Services to legally allow those doses to be imported from Canada.

That may not happen now, Holler said, as Canadian authorities are now worried about running out of vaccine there if a late flu outbreak occurs in early 2005. ID Biomedical is contractually obligated to provide that market with the vaccine first.

In addition to making the Fluviral vaccine, ID Biomedical is developing a nasally inhaled flu vaccine and a number of other vaccine products.

Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.