WanTai Bio Terminates Nine-Valent HPV Vaccine Collaboration with GSK

Jul 22, 2024 19:38 CST Updated 19:38

WANTAI BioPharm

Biological Diagnostic Reagents and Vaccine R&D, Manufacturer

GSK

Pharmaceutical R&D Manufacturer

Competition in the HPV vaccine field is becoming increasingly fierce, following the price war and the capacity war, another major event has occurred.

After the close on July 22,WANTAI BioPharm Announces Termination of HPV9-AS04 Candidate Vaccine Collaboration with GSK

According to the announcement, Wantai Canghai and GSK signed a "Cooperation Agreement" on September 6, 2019, aiming to jointly develop a new generation of cervical cancer vaccine, the HPV9-AS04 candidate vaccine. However, after friendly consultations, both parties decided to discontinue the development and commercialization cooperation under this agreement and signed a termination letter on July 20, 2024.

Regarding the termination of this cooperation, WANTAI BioPharm stated that both parties will sincerely cooperate to properly handle the termination matters in accordance with the terms of the "Cooperation Agreement" within 100 days. Despite the termination of the cooperation, Wantai Canghai will still assist GSK in completing clinical trials, pharmacovigilance, and quality-related work associated with before the agreement's termination.

WANTAI BioPharm has received two milestone payments totaling 22 million euros, which will not be refunded due to the termination of the cooperation agreement. After the termination of this cooperation, Wantai Canghai will no longer receive other milestone payments and sales royalties stipulated under the "Cooperation Agreement." The company explicitly stated that this change will not affect the recognized revenue of Wantai Canghai. The follow-up work after the termination of the "Cooperation Agreement" will not incur significant expenses or lead to major asset impairment.

Given that the development of the HPV9-AS04 candidate vaccine will no longer continue, after the termination of the "Cooperation Agreement," WANTAI BioPharm will no longer hold the exclusive agency rights for the HPV9-AS04 candidate vaccine in China and certain other countries/regions. However, the clinical application process for the nine-valent HPV vaccine currently being co-developed by WANTAI BioPharm and Xiamen University is still proceeding in an orderly manner.

WANTAI BioPharm, the leader in HPV vaccines, is the most crucial contributor to Zhong Shanshan's rise as the richest person. After its listing in 2020, WANTAI BioPharm generated 26 consecutive limit-up trading days and was regarded by many institutions as the stock with the greatest potential in the biopharmaceutical industry; in 2022, it was held by up to 586 institutional investors.

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