US-based biotechnology firm Novavax has formed a joint venture with Cadila Pharmaceuticals for developing and commercialising virus-like particle-based (VLP-based) vaccines.
The joint venture will develop and commercialise Novavax's VLP-based vaccine and Cadila's therapeutic vaccine candidates against cancer as well as its adjuvants, biogeneric and biological diagnostic products for the Indian territory, Navavax said in filing to Security Exchange Commission (SEC).
Novavax would provide the technology and Cadila would invest $8 million (Rs 40 crore) over three years to support the joint venture operations, it added.
In the proposed joint venture, Cadila would have 80 per cent stake while remaining 20 per cent will held by Novavax, company said.
Novavax will also have the right to negotiate license arrangements of certain vaccines developed by the joint venture for commercialising it outside the India.
As part of the agreement which both companies signed on March 31, 2009, a wholly-owned subsidiary of Cadila will purchase 12.5 million shares of Novavax's common stock at the market price of $0.88 per share, for an aggregate of $11 million (Rs 55 crore).
Cadila Managing Director Rajiv Modi will join the Novavax Board of Directors immediately.