Imugene partners with Teva to develop poultry vaccine

Animal health biotech Imugene (ASX:IMU) has signed an agreement with Abic Biological Laboratories Teva, the animal health division of Israeli-based Teva Pharmaceutical Industries, to develop and evaluate a new vaccine for the prevention of poultry coccidiosis.

"As a small biotech, we have signed a deal with a major with very good global prospects," said Imugene's managing director Warwick Lamb.

Lamb also said that the deal was important for Imugene because "there haven't ever been any significant deals signed with multinationals and Australian animal health companies".

Imugene will construct vaccine candidates which will then be trialled at the University of Technology, Sydney. Abic is funding the vaccine product development feasibility study which will combine Imugene's patented adenoviral vector delivery system with patented coccidian genes supplied and owned by Abic.

Coccidiosis is the second biggest poultry treatment product category, second only to in-feed antibiotics. The disease is caused by seven different species of coccidia -- single-celled parasites that live in the gut wall of their host. Coccidiosis can cause weight loss and poor feed conversion as well as high death rates in chicks and adult birds. Currently it is treated in broilers using a range of chemicals called 'coccidiostats' which are declining in efficacy due to developing resistance.

While Abic already sells a 'non-vectored' sub-unit coccidian vaccine for the poultry breeder markets in various countries for the maternal immunisation of offspring chicks, Imugene's vector "can be put in water instead of injecting every bird," said Lamb. This could potentially allow a vaccine to be introduced into the much larger broiler market.

Once trials and license negotiations are complete and market authorisation is obtained, Abic will produce, sell and distribute the vectored coccidia vaccine with Imugene receiving an undisclosed royalty.

Lamb said that if all goes well a product from the partnership should be available within three and a half years years.

Merial deal

Imugene's partnership with Abic follows an exclusive sub-license agreement signed in October with international livestock health company and Merck-Aventis subsidiary Merial to develop and sell Imugene's poultry productivity enhancing product.

"The main benefit to Imugene and shareholders is that it dramatically reduces the risk of that product actually getting to market," said Lamb. "This is external validation by one of the biggest players in this field globally."

Lamb said he expected that a product from the partnership will be ready for market within two and a half years.