Novartis pays $20M up front for vax program

Novartis is forking over $20 million up front to license AlphaVax's investigational Cytomegalovirus (CMV) vaccine program. CMV causes 700 deaths and 17,00 cases of severe disability in newborns each year. In addition to the upfront fee, AlphaVax will be eligible for milestones and royalties. Novartis also gains the rights of first negotiation to AlphaVax' preclinical respiratory syncytial virus program and also has an option to make an equity investment at the end of phase II clinical trials for 4 million shares.

"We are happy to gain access to a promising vaccine candidate for the prevention of cytomegalovirus infections, which are particularly problematic during pregnancy as they can cause permanent disability in newborns," said Dr. Andrin Oswald, CEO of Novartis Vaccines and Diagnostics. The vaccine is expected to enter phase II clinical trials in 2009.

- here's Novartis' release
- read the AP report

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