WINNIPEG – Cangene Corp. (TSX:CNJ) says the scope of its contract related to U.S. government biodefence programs has been widened in a move that could generate as much as $7 million in revenue over the next 18 months.
The deal has also been modified to include additional option periods through 2017 that could generate tens of millions more in revenue, Cangene said in a release Tuesday.
The contract with the Centers for Disease Control and Prevention has involved the supply of Vaccinia Immune Globulin Intravenous into the U.S. strategic national stockpile.
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Under the terms of the extension, Cangene will conduct additional services to support licensure maintenance activities for VIGIV that could generate up to some $6.9 million in revenue.
The extension includes future optional services to support licensure maintenance activities for the product, as well as options for additional manufacturing and plasma collections.
The optional periods, if exercised, could generate an additional $45 million in revenue if the baseline scope of work is implemented, or up to an additional $77 million in revenue if the maximum scope is implemented.
VIGIV is a hyperimmune product used to treat and prevent certain types of severe complications that may be associated with smallpox vaccination.
“The extension of our VIGIV contract underscores Cangene’s leadership in biodefence contracting, which complements our pipeline-focused strategy in the specialty biopharmaceutical space,” said president and CEO John Sedor.
“We look forward to continuing to work together with the U.S. government and the CDC to ensure preparedness against the threat of smallpox.”
Cangene Corporation (TSX: CNJ), with manufacturing facilities in Winnipeg and Baltimore, is focused on the development and commercialization of specialty therapeutics and also operates a plasma-collection facility in Winnipeg under the name Cangene Plasma Resources.
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