MOUNTAIN VIEW, Calif., Jan. 12 /PRNewswire/ -- Aviron (Nasdaq: AVIR) is
providing additional information regarding the transaction announced earlier
today between the company and Wyeth Lederle Vaccines for the marketing of
FluMist(TM) -- Aviron's investigational intranasal influenza vaccine.
As consideration under the agreement, which is subject to Hart-Scott-
Rodino review, Aviron will receive cash payments of $15 million for the
initial license, $15 million upon acceptance for filing with the U.S. Food and
Drug Administration (FDA), and $20 million upon FDA marketing approval for
FluMist(TM). Compensation for achieving additional development and regulatory
milestones is included in the agreement terms. The granting of certain other
rights under the license would trigger additional payments in excess of
$140 million to Aviron.
Consideration for the license also includes a commitment to provide up to
$40 million in future financing to Aviron from Wyeth-Ayerst Laboratories, a
portion of which is contingent upon regulatory approval of the product, with
the remaining amount to come from participation in future Aviron securities
offerings. The total potential value for the license fees, milestones and
financing support that Aviron could receive under the collaboration exceeds
$400 million.
Wyeth will distribute the product and record all revenues. In addition to
the payments mentioned above, Aviron anticipates that it will receive in the
range of 40 percent of product revenues from Wyeth, in the form of product
transfer payments and royalties, which increase at higher sales levels.
Aviron will incur expenses to supply and co-promote the product. Further
commercial terms have not been disclosed.
Aviron is a biopharmaceutical company based in Mountain View, CA focused
on prevention of disease. The company's goal is to develop products that
offer cost-effective prevention of a wide range of infections that affect the
general population. The majority of Aviron's products under development are
live vaccines against viral infections. FluMist(TM) is the company's lead
vaccine candidate. Aviron plans to submit its license application for
FluMist(TM) to the FDA later in 1999.
The statements in this press release that are not historical facts are
forward-looking statements that involve risks and uncertainties including,
without limitation, risks associated with the inherent uncertainty of
pharmaceutical research, product development and commercialization, and the
impact of competitive products and patents. Factors relating to Aviron that
could cause actual results to differ materially include, but are not limited
to, failure to receive regulatory approval for the marketing of FluMist(TM) or
to receive payments under collaborative agreements that are contingent upon
future events that may or may not occur. Sales of FluMist(TM) and future
payments to Aviron are dependent upon the successful development,
manufacturing, supply, sale and distribution of the product by Aviron, its
third party suppliers and Wyeth Lederle. Risks and uncertainties also include
those detailed from time to time in Aviron's periodic reports filed with the
Securities and Exchange Commission including Quarterly Reports on Form 10-Q
and Annual Reports on Form 10-K. Actual results may differ from the forward-
looking statements.
To receive an index and copies of recent press releases, call Aviron's
News-On-Call toll-free fax service, 800-758-5804, extension 114000.
Additional information about Aviron can be located at http://www.aviron.com.
SOURCE Aviron
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Related links:
http://www.aviron.com
CONTACT:
Media: Karen Gilbert of Aviron,
650-919-6578; or John Bluth, 415-356-1000, or Louise Leavitt,
212-453-2000, both of Fleishman-Hillard, for Aviron; or
Investors: Lyn Christenson of Aviron, 650-919-3716
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