In the first half of 2011 Vivalis increased sales by 165 per cent, primarily because of a big uptick in licensing income. Vivalis is on track to hit its full year deal target after signing two commercial licenses for the EB66 cell line in the first six months of 2011.
“Commercial and scientific advances drove very strong revenue. Our EB66 technology continues to make progress in establishing its position as a solution for replacing the use of eggs in the manufacturing process vaccines”, Franck Grimaud, CEO of Vivalis, said.
As well as commercial EB66 licenses with Kyoto Biken and Transgene for the production of vaccines, Vivalis added two research agreements and tightened ties to GlaxoSmithKline (GSK). Vivalis had a co-exclusive influenza agreement for EB66 with GSK, CSL and Nobilon but the deal has changed.
“The now exclusive nature of GSK’s influenza license will trigger the payment of other additional milestone payments and higher royalties”, Vivalis said. In November the US Food and Drug Administration (FDA) cleared GSK for Phase I trials of vaccine produced using EB66.
Revenue from commercial partners now accounts for 81 per cent of recurring operating income, up from 56 per cent a year ago. Over the same period growth in licensing income has outstripped revenue from services, which was up 64 per cent year-on-year.
“We continue to have a sound and solid financial position, a significant advantage in the current economic climate”, Grimaud said. Sales growth was achieved with a 14 per cent increase in costs, which led to operating loss falling by one-third.