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UPDATE 1-INTERVIEW-Crucell has lodged Quinvaxem vaccine tender

Published 06/19/2009, 12:11 PM
Updated 06/19/2009, 12:24 PM
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* Did not tender for separate Indian contract for Quinvaxem

* Would help make pandemic flu vaccine if called upon

* Targeting independent growth, has acquisition targets (Adds CFO comments, details)

By Aaron Gray-Block

AMSTERDAM, June 19 (Reuters) - Dutch biotech firm Crucell said on Friday it has lodged a tender to renew a UNICEF contract for the supply of its paediatric vaccines, but will not lodge a separate tender with Indian authorities.

Crucell Chief Financial Officer Leon Kruimer told Reuters UNICEF expects the market for combined paediatric vaccines to grow to about 140-150 million doses per year in coming years, up from about 75 million in 2008 and he is confident the company can maintain market share.

Crucell, whose main rival for the UNICEF contracts is GlaxoSmithKline, held a market share of about 50 percent last year, but analysts have raised concerns about the fact contracts with world health organisations end on Dec. 31 2009.

"We can't get to an 80 or 90 percent market share, but 50 or 60 percent is possible," he said.

Kruimer added that Indian authorities had recently asked for tenders to supply the Indian market and although Crucell would be unable to lodge a tender within the required timeframe, the Indian contracts would tie up capacity of the Indian suppliers.

"Whatever capacity there might be in India is focused on India, so the market outside of India it is still for Glaxo and us because nobody else will enter, apart from the Indian companies," he said, adding that Indian rivals lack capacity.

Crucell posted its first-ever full-year profit last year based on continued growth in sales of its paediatric vaccine Quinvaxem, which prevents five childhood illnesses.

Kruimer added that Crucell, which produces flu, hepatitis and typhoid fever vaccines, will not immediately produce a vaccine for the H1N1 flu virus and will instead finish off production of its seasonal flu vaccine first.

The World Health Organisation (WHO) declared a flu pandemic last week and Kruimer did not rule out the possibility of making a pandemic vaccine either for the H1N1 strain or a new variant if the WHO requested Crucell to help boost global supplies.

"If there is tremendous pressure on the industry to make it and there will be if it's a real dangerous thing, they will need all the capacity. Then we can help if we have excess capacity," Kruimer said, adding that Crucell would also need to buy the antigen from its supplier.

Crucell is a small player in worldwide flu vaccine production in a market led by firms such as Sanofi-Aventis, GlaxoSmithKline and Novartis.

Crucell had said at its first-quarter results that due to the extra attention for the flu virus it expected sales of its seasonal flu vaccines would be boosted this year, but Kruimer said any boost would not be of material impact to its earnings.

The company had previously been the target of a takeover bid from U.S. drug maker Wyeth, but these talks were cancelled in January after the acquisition of Wyeth by Pfizer.

Kruimer reiterated that Crucell is not up for sale and added that the company is focused instead on independent growth. It also has potential takeover candidates.

He did not say who the company was targeting, but added that some of them are in Japan. Kruimer added, however, the Japanese market is difficult to enter. (Editing by David Jones)

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