Jump to full article: The Washington Post, 2009-11-17
Author: Mike Musgrove Washington Post Staff Writer
Intro: The Rockville maker of an experimental nicotine vaccine has signed a licensing deal with pharmaceutical giant GlaxoSmithKline that could produce a huge payday if the anti-smoking drug can be successfully brought to market.
Nabi Bioparmaceuticals outlined the terms of the deal Monday. It said a unit of GlaxoSmithKline has agreed to pay $40 million initially for the exclusive worldwide licensing rights to the drug, called NicVax.
Nabi would receive additional money if it meets certain developmental and regulatory milestones, including the development of follow-up nicotine vaccines. Nabi would also earn double-digit royalties from sales if the product reaches the market.
All told, Nabi could collect more than $500 million from the development and sale of the vaccine and its successors, the company said.
"It's the biggest deal we've ever had," said Raafat Fahim, Nabi's president and chief executive. He added that NicVax would become the company's flagship product if it successfully passes final rounds of testing.
Nabi says its vaccine causes a body's immune system to produce antibodies that bind to nicotine molecules, making them too large to reach the brain's receptors.
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