CSL wins flu vaccine contract in US

CSL (ASX:CSL) subsidiary CSL Biotherapies has won a flu vaccine contract with the US health department that could be worth as much as US$1.5 billion in the event of a pandemic.

CSL Biotherapies is one of five companies chosen by the US Department of Health and Human Services to supply pre-pandemic and pandemic vaccine antigens and services.

The five companies selected are the only US-licensed flu vaccine manufacturers.

All the contracts have a three-year term. This is the first time the health department has awarded deals to provide master vaccine seed stocks for viruses with pandemic potential.

CSL Biotherapies' contract is worth a maximum of US$1.51 billion ($1.44 billion), though it would require a pandemic to be declared for the project to generate anywhere near its maximum potential.

For now, the office responsible for awarding the contract – the Office of the Assistant Secretary for Preparedness and Response – has allocated US$11.7 million in seed funding for the contract.

This includes US$4.4 million to cover the production of master seed stocks and US$7.3 million for the companies to store pre-pandemic vaccines.

Contrary to some reports, contracted companies including CSL Biotherapies have not yet received these funds, and have not yet been informed how the allocation will be shared between them.

CSL Biotherapies has already been contracted by the federal government to manufacture flu vaccines for Australia in the event of a pandemic.

The company is involved in every stage of the production of influenza vaccines, from seed virus development to producing packaged doses, and boasts a capacity to produce over 80 million doses per year.

The other companies contracted in the project are MedImmune, GlaxoSmithKline, Sanofi Pasteur and Novartis.

CSL (ASX:CSL) shares were trading 0.45% lower at $44.64 as of around 3:30pm on Wednesday.