Cangene extends VIGIV supply contract with CDC
Cangene entered into a new contract with the CDC in 2012 after supplying the U.S Strategic National Stockpile with VIGIV since 2002. VIGIV is a hyperimmune product used in treating certain types of severe complications related to smallpox vaccination. Under the new contract, Cangene will continue to supply VIGIV to the U.S. government for an additional 18 months with three additional option periods that go through 2017.
"The extension of our VIGIV contract underscores Cangene's leadership in biodefense contracting, which complements our pipeline-focused strategy in the specialty biopharmaceutical space," John Sedor, the president and CEO of Cangene, said. "We look forward to continuing to work together with the U.S. government and the CDC to ensure preparedness against the threat of smallpox."
Cangene will also conduct additional services to support licensure maintenance activities for VIGIV that could result in approximately $6.9 million in revenue for Cangene during the next 18 months. If exercised, the optional periods could generate between $45 and $77 million in revenue for the company.
Cangene's VIGIV was first accepted into the U.S. Strategic National Stockpile in 2002. The product was subsequently licensed by the U.S. Food and Drug Administration in 2005 and by Health Canada in 2007.